Nokia Making A Come Back

Nokia, a well-known mobile phone brand is making a comeback after it was bought by Microsoft for $7bn in 2014. Microsoft had hoped the aim of the deal was to enter into the mobile hardware space to help increase its adoption of Windows for smartphones.

 

Satya Nadella, the company’s CEO, acknowledged that Microsoft’s share of the smartphone market is too low. Nokia still existed separately as a company but it had only specialised in networking equipment after it sold its business to Microsoft. But now Nokia is reclaiming its mobile phone brand with the help of a new partnership.

 

They stated that, “Nokia has announced plans that will see the Nokia brand return to the mobile phone and tablet markets on a global basis.” “Under a strategic agreement covering branding rights and intellectual property licensing, Nokia Technologies will grant HMD global, a newly founded company based in Finland, an exclusive global license to create Nokia-branded mobile phones and tablets for the next ten years.

 

” The company further stated that “under the agreement, Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights”. “Nokia will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments, but will not be making a financial investment or holding equity in HMD,” explained Nokia.

 

“Nokia Technologies will take a seat on the Board of Directors of HMD and set mandatory brand requirements and performance related provisions to ensure that all Nokia-branded products exemplify

 

Consumer expectations of Nokia devices, including quality, design and consumer focused innovation,” added the company.