Finnish mobile phone company Nokia is planning a comeback two years after it left the market following a defeat by Apple Inc. and the Samsung network.
The company signed a strategic brand and intellectual property licensing agreement with Helsinki-based company HMD Global. The agreement also states that it will allow HMD Global to create a whole “new generation of Nokia smartphones and tablets.”
“Under a strategic agreement covering branding rights and intellectual property licensing, Nokia Technologies will grant HMD global Oy (HMD), 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 said in a statement. “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.”
The decision to return to business is strongly based on the contention that customers will recognise the brand that completely disappeared after its US$7 billion (AU$9.7 billion) deal with Microsoft failed after Apple’s iPhone and Google’s Android devices, including the Samsung smartphone series, dominated the market.
This is an opportunity for the once global leader in smartphones sales to get back in business without having to put too much at stake.
“It’s going to take more than a well-known brand name in this competitive market,” the Sydney Morning Herald quoted Annette Zimmermann, a smartphone analyst at research firm Gartner in Germany, as saying. “To shake up the market and offer something that excites the fickle market will be difficult.”
However, the company did not give up on electronics entirely, Wired reported. The Nokia Technologies division still makes tablets that run on the Android system for the Chinese market. Nokia reportedly also acquired French gadget maker Withings to establish the company’s renewed intentions to make a comeback in the consumer electronics market.