Nokia is poised to stage a comeback with recent reports that the former managers of the old Finnish company have licensed the brand from Microsoft. The group is said to have inked a deal with Google and Foxconn, to manufacture a new Nokia handset running on Android.
Nokia Android Phone And Google Partnership
The looming Nokia Android smartphone will, of course, no longer be produced by Nokia as it is already focused on the manufacture of mobile network equipments. Rather, the company founded by former Nokia executives called HMD Global is at the forefront of the new initiative.
What is particularly interesting is the swiftness of the developments. The news about the licensing and HMD Global’s Google partnership has only surfaced in the past few days. However, a handset is already almost ready for release in the early part of next year.
“Consumers may be carrying different smartphones now, but are they really in love and loyal to those brands?” Arto Nummela, Nokia veteran and one of the leading figures behind HMD Global told Reuters. “We want to be one of the key competitive players in the smartphone business.”
Licensing The Nokia Brand
The licensing deal with Microsoft has already put the HMD top brass at the helm of feature phone business sold to Microsoft by Nokia Corp. HMD is required to pay royalties to the Finnish company as well. But the group will be able to use the Nokia brand exclusively in the manufacture of mobile devices and tablet for the next ten years.
icrosoft itself has not been successful with the Nokia brand. It was effectively saddled by the unpopular Windows mobile operating system, contributing to it decline.
It is important to note that at this point, the Nokia brand still claims tenth of the feature phones sold around the world. Samsung and Alcatel are steadily encroaching on its market share but HMD’s entry could help turn things around.
“The barriers to entry for the Android phone space are low,” Ben Wood, analyst at CCS Insight said in an interview. “What HMD has is the Nokia brand and management experience. The key to its success will be driving scale.”