Microsoft bought brand in 2013, now Nokia licensing owned by HMD with Foxconn acquiring manufacturing/distribution rights
After the Nokia smartphone unit was purchased by Microsoft in 2013, the brand slowly faded away, a big departure from the days when the brand dominated the market. But, after missing out on the smartphone revolution, a new deal could see the brand return to the consumer device business with Android-based smartphones and tablets.
The agreement covers branding and intellectual property license and allows HMD, a newly founded Finland-based company, “an exclusive global license to create Nokia-branded mobile phones and tablets for the next 10 years,” according to Nokia. HMD will pay royalties based on phone sales.
Company officials say HMD was formed specifically to focus on selling branded consumer products; it plans to invest $500 million over the net three years “to support the global marketing of Nokia-branded mobile phones and tables, funded via its investors and profits from the acquired feature phone business.”
Nokia Technologies President Ramzi Haidamus said he’s excited for the company to revive “a truly iconic name” in handsets.
“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 … brand in global markets. Working with HMD and [Foxconn] will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”
HMD CEO-designate Arto Nummela said the goal is “a unified range” of branded products. “Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want.”
