Just when you thought things are over for Nokia phones, partly because the competition is pretty stiff, the Finnish brand is preparing for a big comeback. Nokia has signed a licensing agreement with a startup, HMD Global, which will enable creation of new Nokia-branded mobile phones and tablets.
In a statement released by Nokia, HMD will have the exclusive rights on a global scale to produce a new range of feature phones, smartphones and tablets carrying Nokia's trademark over the next 10 years. Microsoft is selling the rights to HMD and Foxconn's subsidiary FIH Mobile in a deal worth $350 million, which include the transfer of some 4,500 employees, per YLE. In addition to branding rights, the agreement also includes intellectual property rights.
Nokia With Android OS
HMD, which is headed by former Nokia executive Arto Nummela, will use Android operating system in the new portfolio of Nokia devices. Leading mobile OS, huge app development community and an old familiar name with impressive expertise in design - wouldn't that create a "perfect" smartphone? Many would think so. Nokia remains to be a popular choice among consumers, and The Verge once wrote about a Nokia Nexus dream, which is now turning into a reality.
Strong Partnership
The bosses of the companies involved in the deal are optimistic about their partnership to bring Nokia brand back. "Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name," said Ramzi Haidamus, president of Nokia Technologies.
Nummela said the products they will produce would surely "resonate with consumers." He added, "Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand and our extensive experience in sales and marketing."
