Nokia phones, tablets are coming back again very soon! The former phone king officially announced its plan to return to the world of phones, smartphones and tablets. And to answer your burning question – yes, it will be Android smartphones and tablets!
Nokia phones was the world’s leading mobile phone maker from 1998 until 2011 when it bet on Microsoft’s Windows mobile platform which proved to be a flop. Analysts say the company failed to grasp the growing importance of smartphone apps compared to hardware. The new product portfolio will be based on Google’s Android. The Finnish company sold its unprofitable handset unit in 2014 for some $7.2 billion to Microsoft, which dropped the Nokia name from its Lumia smartphone handsets. With the new deal, Nokia eyes some new revenues from its still valuable consumer-brand, without having to bear the financial risks related to it.
Nokia won’t have a financial stake in the venture, though it’s set to collect fees from brand licencing and intellectual property. The comeback effort is a bet that shoppers will remember and embrace a brand that almost disappeared with the sale of Nokia’s handset unit to Microsoft Corp. in 2014. Nokia, which once dominated global smartphone sales, gets a risk-free second chance at a business that was crushed by Apple’s iPhone and Google’s Android software introduced in 2007.
“It’s going to take more than a well-known brand name in this competitive market,” said Annette Zimmermann, an smartphone analyst at research firm Gartner in Germany. “To shake up the market and offer something that excites the fickle market will be difficult.”
HMD will pump $500 million in global marketing over the next three years to revitalize the Nokia name, which has been cooling off after years of relative inactivity. Now Nokia has signed an agreement with FIH “to establish a collaboration framework to support the building of a global business for Nokia-branded mobile phones and tablet.”
As Nokia’s announcement warns “there is still much work for HMD to do, so you’ll need to wait a bit longer to see what the next wave of Nokia phones and tablets look like.”