After their debacle in the smartphone market, the one-time mobile business prodigy, Nokia is soon going to make a powerful comeback. Learning from their previous slip-ups Nokia technologies claimed to hit the market bolstered by a newly-established firm HMD Global, owned by a private equity fund Smart Connect under the aegis of former Nokia executive Jean-Francois Baril.
HMD has acquired the license to use the ‘Nokia’ trademark on worldwide mobile devices until 2024. HMD has also aimed to invest about $500 (£346m) for the following three years. They will mainly focus on marketing the mobile devices worldwide. The residual feature phone assets of Microsoft that includes Hanoi manufacturing facility, sales, production and distribution is purchased by Taiwan’s leading electronics contract manufacturing company Foxconn, a subsidiary of FIH. Unlike their erstwhile rigid operating system, this time Nokia will hinge on Google’s Android.
Nokia’s range of Lumia smartphones didn’t go well with the consumers and Microsoft’s acquisition of their rights a couple of years back indicated the fiasco. However, even this high-powered collaboration couldn’t save their venture from the giants like Apple and Google. Dearth of in-demand apps was mainly held responsible for this. According to market analysts’ research from IDC, only 2.3 million units of Microsoft were sold out against 82 million handsets of Samsung and Apple’s 51 million.
Nokia have declined to divulge any further details regarding the launch of their refurbished product but they are affirmative that this time it will literally ‘connect’ with the people, reminiscent of their former tagline ‘Connecting people’. Ramzi Haidamus, President of Nokia Technologies, said, “Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”Arto Nummela, CEO of HMD global, said, “We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers.”