Published in Mobiles

Nokia takes smartphone business back from Microsoft

by on19 May 2016


Thanks for the restructuring


Nokia has taken back its mobile phone and tablet brand from Microsoft and getting back into the market globally.

Nokia famously sold the company to Microsoft which fired most of its staff before giving up on the idea. Now Nokia appears to have bought its brand back 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.  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.

HMD will invest more than $500 million over the next three years to support the global marketing of Nokia-branded mobile phones and tablets, funded via its investors and profits from the acquired feature phone business.

HMD's new smartphone and tablet portfolio will be based around Android, so it is playing it safe in terms of OS. FIH Mobile Limited (FIH), a Foxconn subsidiary has bought the remainder of Microsoft's feature phone business assets, including manufacturing, sales and distribution. HMD and Nokia Technologies have signed an agreement with FIH to establish a collaboration framework to support the building of a global business for Nokia-branded mobile phones and tablets.

This agreement will give HMD full operational control of sales, marketing and distribution of Nokia-branded mobile phones and tablets, with exclusive access to the pre-eminent global sales and distribution network to be acquired from Microsoft by FIH, access to FIH's world-leading device manufacturing, supply chain and engineering capabilities, and to its growing suite of proprietary mobile technologies and components.

Nokia will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments, but will not be making a financial investment or holding equity in HMD.

HMD’s new CEO will be Arto Nummela who previously held senior positions at Nokia and is currently the head of Microsoft's Mobile Devices business for Greater Asia, Middle East and Africa and Microsoft's global Feature Phones business. HMD's president will be Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, and previously held key roles at Nokia, HTC and other global brands.

Last modified on 19 May 2016
Rate this item
(11 votes)

Read more about: