Nokia To Make A Comeback In Device Market With Android Phones
Nokia was once the godfather of the mobile phone industry, until the arrival of smartphones and its selloff to Microsoft. However, things are looking bright again as the company is readying to make its comeback with a 10 year deal with HMD Global Oy.
HMD is a new outfit in Finland which was created to provide a “independent home for a full range of Nokia branded feature phones, smartphones, and tablets.” This ten year deal includes exclusive branding rights and IP licensing. In return, HMD will pay royalty to the company for selling Nokia branded mobiles which will all be Android based.
According to Nokia`s president of:
“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 Nokia brand in global markets.
HMD has bought all the rights from Microsoft to use the Nokia`s brand on phones. The deal will be done in the second half of 2016, after which HMD will be the only global licensee for all types of Nokia branded mobiles. HMD also plans to invest $500 million over the next three years for marketing.
Nokia`s name almost disappeared from the market after the company sold its entire handset business to Microsoft for around $7.2 billion in 2013. Microsoft never used the name again and in 2014 decided to completely stop using it and focused on Lumia.
Both Nokia and HDM signed the agreement with FIH Mobile Limited, a subsidiary of Hon Hai Precision, who purchased the remaining feature phone assets, including manufacturing, sales, and distribution from Microsoft.