Nokia (NOK) says it needs to make deep cuts in its workforce, but that it will continue to invest in cutting-edge technologies. To that end, Nokia is actually hiring developers from mobile imaging firm Scalado. Nokia is also buying all Scalado’s patents and imaging technologies for an undisclosed amount.
Scalado makes software for capturing, viewing and creating images on smartphones. The company works with Nokia and other manufacturers to customize its software for various mobile devices and operating systems, and also offers a consumer app that allows users to transfer photos among different devices. “This is a great opportunity for many of our people to show their leadership in imaging and to continue to build its future,” said Håkan Persson, chief executive officer of Scalado AB.
Nokia has already demonstrated leadership in imaging on smartphones with its PureView technology, and the Scalado acquisition should deepen this expertise. “The company is hoping to gain market leadership in music and imaging, notably with its PureView and now the purchase of Scalado,” says Dave McQueen, principal analyst at Informa Telecoms & Media. “All these have to combine with better smartphones using new materials, new technologies and location-based services to provide stronger points of differentiation, whilst making them available at a range of price points.”
But Nokia may be running out of time to execute that strategy. “Nokia has urgent problems. Very urgent and getting worse every day that passes,” says analyst Jeff Kagan. “This won’t be the last of the bad news coming from Nokia either.”
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Full disclosure: the author owns NOK stock.
