Tag: foxconn

Nokia mobile devices will start selling again next year

The brand will be releasing its first Android powered smartphones and tablets at the beginning of 2017.

The very first Nokia mobile devices that have seen store shelves in two years will start being sold in 2017. They will include both smartphones and tablets. Those gadgets will run on Android, said the company.

The Finnish company is now completing the last stages of a licensing agreement with HMD Global.

Through this new agreement, HMD Global holds exclusive rights to use the brand for Nokia mobile devices for the next 10 years. That company is also based in Finland. It will manufacture phones under the Nokia brand and will also continue the production of the company’s existing feature phone lineup.

Nokia Mobile Devices - Image of LuminaBoth HMD Global and Foxconn, a Chinese company, acquired Nokia from Microsoft. Foxconn was contracted for the mobile device manufacturing. The next devices released under the brand’s name will run on Android and will be available for purchase before mid-2017.

The Nokia mobile devices will be marketed on the brand’s reputation for simple, quality products.

According to Arto Nummela, HMD Global CEO, “We will be extremely true to the Nokia brand. The brand is known for simplicity, ease of use, reliability, and quality. These are the elements that we will deliver together with amazing industrial design.” That company will be making an investment of more than $500 million into marketing smartphones and tablets under the Nokia name.

Two years ago, Nokia sold its mobile hardware division to Microsoft. The acquisition was for $7.2 billion and required Nokia to stop branding its handsets until the close of this year. The company had been struggling and had already slashed its workforce from 24,000 at its highest to less than 1,000.

Microsoft didn’t do much better with the hardware division. It proceeded to sell the Nokia mobile devices brand to Foxconn and HMD Global for $350 million. This was in response to a massive 46 percent phone revenue nosedive it experienced last quarter. The companies are going ahead with new smartphones and tablets boasting the Nokia brand’s name as well as the Android operating system.

Nokia smartphones and tablets to make a comeback

The Nokia brand is being revived under a new licensing agreement.

The Finish-based multinational communications and information technology company has announced that it will be making a comeback in the mobile industry and will be licensing its brand and intellectual property to HMD global, a newly established company that will produce and sell a portfolio of Andoird-powered Nokia smartphones, feature-phones and tablets.

Feature-phones will be one of the main focuses.

HMD Global – also a company based out of Finland and led by ex-Nokia veteran Arto Nummela – made a conditional agreement with Microsoft to acquire the rights to make and sell Nokia branded mobile devices.

Nokia Smartphones - Image of Nokia N8The major focus of HMD Global will be on feature-phones; the mobile device with which Nokia Technologies has had the greatest amount of success. The agreement that Nokia has made with HMD will give the company all of Nokia’s branding and cellular patents and, in return, Nokia will receive royalty payments from HMD for the sales of the devices, which will cover both brand and intellectual property rights. This agreement will last for ten years.

Once the transaction is completed, which is expected to occur in late June, Nummela will become the CEO.

HMD plans to invest over $500 million to support the global marketing of Nokia smartphones and other mobile devices.

This large investment, which is planned to take place over the next three years, will be paid for by the new business’s investors and profits.

Commenting on the new agreement, Nokia Technologies President Ramzi Haidamus said that it marks the start “of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name.” He added that “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.”

In addition to its new deal with HMD Global, the remainder of Nokia’s business has been purchased by FIH Mobile ltd., a subsidiary of Foxconn Technology Group. FIH reportedly purchased Nokia’s former feature-phone business from Microsoft for $350 million and will take over its manufacturing facility in Vietnam.

FIH and HMD have already formed a collaborative agreement designed “to support the building of a global business for Nokia-branded mobile phones and tablets,” reported The Verge.

Presently, no information has been released in regard to when consumers can expect the new Nokia smartphones, feature-phones and tablets to hit the market.