The Nokia brand is to make a mobile device return-- a Finland-based company named HMD Global Oy (HMD) gets the exclusive global license for Nokia-branded mobile phones and tablets.
In a simultaneous announcement Microsoft starts shedding its mobile phone ambitions through the sale of its feature phone business (including brands, software, design rights and a Vietnam manufacturing facility) to HMD and FIH Mobile, a newly created Hon Hai/Foxconn subsidiary. The deal is worth $350 million.
However Microsoft insists it is not giving up on Windows Mobile-powered smartphones, and will continue supporting such devices and OEM partners.
Moving back to the Nokia brand's return to mobile devices, HMD is led by Arto Nummela, a Nokia veteran who moved to Microsoft following the sale of the former's mobile business by the latter. The company already has a collaborative agreement with FIH, the result of which was the Nokia N1 tablet.
"We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers," Nummela says. "Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand and our extensive experience in sales and marketing. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want."
Interestingly, while deal might appear hands-off for Nokia, that's not actually the case-- the company has a seat in the HMD board, and will "set mandatory brand requirements and performance related provisions." No to mention the announcement aligns all too nicely with the recent acquisition of fitness device maker Withings...
Thus, in conclusion? Nokia phones live on!
Go Nokia Signs Strategic Brand and IP Licensing Agreement With HMD
Go Microsoft Selling Feature Phone Business to FIH Mobile and HMD
