As we all know that NOKIA Group is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, is the greater Helsinki metropolitan area and recently Nokia announced that it will be back to the world of mobile phones through brand licensing.
Nokia Back To The World Of Mobile Phones Through Brand Licensing
[dropcap]The[/dropcap] Finnish multinational communications and information technology company Nokia announced on Wednesday 18 that it has signed a deal for the 10 years with the company HMD Global independently licensing its brand for the mobile phones and tablets and the devices will be manufactured by a subsidiary of Taiwan’s Foxconn.
The company Nokia, which was once the largest manufacturer in the world of mobile phones, has sold its handset business to the tech giant Microsoft in 2014. However, the company got their patent and began preparing a return to the market through brand licensing, and currently the company gets most of its revenue from the telecommunications equipment.
Nokia HMD will receive the royalty payments related to the sale of products with its brand. “Instead of the Nokia back to produce cell itself, the HMD plans to produce mobile phones and tablets that can enlarge the Nokia brand value in global markets,” said Ramzi Haidamus, head of Nokia’s patent unit.
The HMD also reached with the tech giant Microsoft for access to Nokia’s portfolio and on Wednesday, before the Nokia announced its return to the mobile phone market, the company announced the purchase of basic cell area, known as “feature phones”. Beside the FIH Mobile, a subsidiary of Foxconn, will pay US $350 million.
As part of the agreement, HMD will buy Microsoft’s Nokia brand to use rights in basic mobile phones by 2024. As the company HMD said in a statement that “Together, these agreements will make HMD the only global licensed for all types of phones and tablets with the Nokia brand”.
The HMD is a newly established company which is controlled by the Smart Connect, an investment fund managed by Jean-Francois Baril, a former employee of Nokia. Hence, the company Nokia did not give details about the releases of new handsets. But, the agreement between the tech giant Microsoft and the HMD to be completed in the second half of 2016.
Moreover, the tech giant Microsoft stated that “It has struggled with its cell division and last year recorded a write-down of $ 7.5 billion related to assets purchased from Nokia, notwithstanding the announced agreement”. Hence, it will continue to develop Lumia line of smartphones.