Nokia is probably one of the most famous mobile phone brand of its time. After being irrelevant (by choosing Windows Phone and previous management actions), Nokia brand is now re-entering into the smartphone business. There will soon be new phones branded as Nokia being sold globally especially in Nokia’s key markets like India. HMD Global Oy, a finnish company founded in the end of 2015 is licensing the Nokia brand and intellectual property IP from Nokia Technologies for a period of 10 years.
Acquiring Feature Phone Rights from Microsoft
Since Microsoft had the exclusive right to use Nokia brand on feature phones, HMD Global is also going to acquire the rights (from Microsoft) to use Nokia brand on feature phones. This suggests that apart from smartphones running Android (yes, new phones will run Android – sorry Windows fans), there will be some feature phones to be carrying the Nokia brand. Feature phones is a dying market, but there is still a demand for them in undeveloped nations.
Foxconn Acquiring Remaining Assets from Microsoft
Apart from that, FIH Mobile Limited (better known as Foxconn) is acquiring the manufacturing , sales, some R&D and other assets from Microsoft. Nokia Technologies and HMD Global have an agreement in place where HMD Global will be allowed exclusive access to make use of the assets that FIH acquires from Microsoft.
Nokia Technologies as BOD of HMD Global
Nokia as company will receive royalty payments from HMD for the use of Nokia brand on its phones. Nokia will not have any stake in HMD Global Oy, neither any financial investments, nor any equity stake. Nokia Technologies however, will be a part of the Board of Directors of HMD Global Oy to set mandatory brand requirements and performance related provisions. This suggests that Nokia is making attempts that the products manufactured under HMD match up to the standards previously set by Nokia in terms of design, durability and reliability.
Arto Nummela who is currently working as the head of Microsoft’s Mobile Devices business for Greater Asia, Middle East and Africa, as well as Microsoft’s global Feature Phones business will be getting the CEO position at HMD Global Oy.
A big thanks to you and all of the Nokia supporters around the world. You continue to remind us of the difference our devices have made in your lives. We can’t wait for you to meet the next generation.
Get weekly updates via email!
Thank you for subscribing.
Something went wrong.