Nokia Mobile - Why wants to get back into mobile phones

The Finnish seeking a partner to give him a year from the manufacture of phones carrying its brand. A risky bet.

#Nokia, return. Three years after selling its mobile phone division at #Microsoft, Nokia of Finland expected to return to this market in late 2016. Its #CEO Rajeev Suri, arrived at the helm in May, announced that the group would boost #smartphone under its brand by building licensing agreements at the end of the non-compete clause that prohibits it to compete with the US until late next year. The path will be more clear that Microsoft has abandoned the Nokia brand in October for its #Lumia smartphones, retaining the for its entry-phones.

Why the return on the consumer market, while Nokia, which also has just sold its mapping activity is now focused on telecom networks - a trade which he further strengthened with the takeover in April of #Alcatel-Lucent ?

Patents sleeping in drawers

"We want to take advantage of the strength of the brand. But see no serious nostalgia of the past. It is simply to take advantage of business opportunities that may arise, "Rajeev Suri had indicated in November 2014, just before the launch of a new Android tablet called N1 . A first step, which responds to the same logic.

The idea is to develop phones based on numerous patents accumulated over 20 years and sleeping snug in a drawer since the sale of the mobile business to Microsoft. Then moving into licensing agreements to allow a third party to manufacture and market Nokia phones.

A formula that has its advantages

Finland is currently seeking a partner. This is the Taiwanese Foxconn that was chosen for the N1 tablet, leaving it to him to take care of its manufacturing, marketing, warranty service as after-sale.

Certainly, income expected from such agreements are lower than when Nokia was making itself at its plants - the group, whose market share rose to 40% before Apple steals the limelight after 2007, once employed tens of thousands of people in its factories to produce as many phones as all its competitors combined.

But those days are over. And the formula has its advantages. The risks are lower. The initial investment is more modest. And future royalties will complete turnover. While maintaining the brand image to the public.

Brand Awareness

But this is it now strong enough to revive the adventure? His reputation remains strong in emerging countries. But while Nokia judge recognized by the 4 billion people, it is not far out of the 100 seats of the ranking prepared by the firm Interbrand.

"Emerging countries, this is not enough, said Annette Zimmermann, Gartner, which said that the competition is fierce with new brands like #Xiaomi or #Wiko. I do not see what interest would a manufacturer to sign with Nokia. Especially since he will have to wait another year. A period during which the brand will continue to depreciate. "


Tag : Windows, Nokia