Nokia has unveiled a plan that will mark the return of its illustrious brand name to the global market for mobile phones and tablet computers.
The network equipment manufacturer announced yesterday that it has signed a strategic agreement granting HMD Global, a private venture registered in Helsinki, an exclusive global right to create a new generation of Nokia-branded mobile phones and tablet computers for the next ten years.
Nokia Technologies will under the agreement receive royalty payments from HMD Global for the sales of Nokia-branded handsets.
“HMD has been founded to provide a focused, independent home for a full range of Nokia-branded feature phones, smartphones and tablets,” Nokia states in its press release.
Ramzi Haidamus, the head of Nokia Technologies, estimates that the agreement will allow HMD Global to manufacture handsets that can leverage and strengthen the value of the Nokia brand across the world. “[The agreement] will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model,” he says.
HMD Global also announced that it has struck a conditional agreement with Microsoft to acquire the rights to use the Nokia brand on feature phones and certain related design rights. The transaction is expected to be completed in the second half of this year.
“Together these agreements would make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets,” Nokia points out.
HMD Global is according to the press release intent on investing considerably in its efforts to market the handsets around the world over the next three years. The over 500 million dollar investment is to be funded by private investors and profits derived from the feature phone business to be acquired.
“Nokia-branded feature phones remain one of the most popular choices of mobile phone in many markets around the world today, and HMD will continue to market them as part of an integrated portfolio alongside a new range of smartphones and tablets,” Nokia states.
The new smartphones and tablets will be powered by Android.
“We will work with world-class providers in manufacturing and distribution to move quickly and deliver what customers want,” says Arto Nummela, the chief executive-designate at HMD Global. Nummela is a former senior executive at Nokia and currently a regional director of the mobile phone business of Microsoft.
Aleksi Teivainen – HT
Photo: Roslan Rahman – AFP / Lehtikuva
Source: Uusi Suomi