Don't call it a comeback: Nokia re-enters the phone market

Published May 23rd, 2016 - 11:34 GMT
Nokia is finally ready to play the game with reigning smartphone giants as Microsoft sells off its feature phone business. (File photo)
Nokia is finally ready to play the game with reigning smartphone giants as Microsoft sells off its feature phone business. (File photo)

After waiting for ages, Nokia is finally getting back into the smartphone business. The Finnish company getting back into the game also has to do with Microsoft selling off its feature-phone business to FIH Mobile. FIH Mobile is a subsidiary of Foxconn, which assembles the world’s mobile devices and several other products. 

Thanks to this announcement, nearly 4,500 employees will either be employed at FIH Mobile, or HMD Global. Ramzi Haidamus, President of Nokia Technologies stated the following regarding the announcement:

“Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”

Making smartphones and tablets is not just going to be Nokia’s forte. The company had acquired Withings for $192 million, the company that deals with health-related products and had also announced a VR camera not too long ago. However, before we get excited for the company producing phones once more, we have to tell that due to lack of resources available at the company’s disposable to manufacture and distribute phones, Nokia could aim to sell phones through a brand-licensing agreement.

HMD is going to make this possible thanks to a $500 million investment that is going to be injected over the course of three years. CEO of HMD, Arto Nummela was pleased to announce the partnership between Nokia:

“We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers. 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. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want.”

It is possible that Nokia releases a phone or tablet this year? It is very difficult to say at this time, but we are thrilled to hear that the company is finally able to have its name stamped on to mobile devices once more. 

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