We're all familiar with Nokia. Together with other key phone
manufacturers from the 90's (such as Motorola), the firm pretty much
dominated the early mobile space, back before smartphones, and produced
some of the most iconic feature phones in the industry; devices which
are still much-loved and often used even today. With the emergence of
smartphones, the likes of Nokia and Motorola took a back seat for a
time, while Apple, Samsung, and others pretty much took over. Nokia took
a gamble and got involved with Microsoft on the Windows Phone project, a
gamble which ultimately didn't pay off and resulted in Microsoft buying
up Nokia's smartphone division, as well as the exclusive rights to
produce devices under the Nokia brand...until now, that is.
Nokia has announced that its CEO, Rajeev Suri, will be speaking at a
keynote at MWC 2017, alongside chief execs of major carrier networks and
app and service developers. Meanwhile, Microsoft's CEO of its
Asia-Pacific branch, James Rutherfoord, has gone on the record saying
HMD Global - the firm which has acquired the rights to sell Nokia phones
and is teaming up with Nokia itself - will launch multiple devices in
2016 and 2017.
According to details sourced by NokiaPowerUser from a "Vietnamese publication", HMD will launch "two new phone products in the fourth quarter 2016 and at least two smartphones in the early second quarter 2017."
This statement is being interpreted as implying the first two
phones will be feature phones rather than smartphones. Truth be told, we
don't find the prospect of new feature phones very inspiring, so the
really exciting stuff for us will be early 2017 onwards when actual
Android-based Nokia smartphones are expected to appear. Basically we
should all be watching MWC 2017 for Nokia's triumphant return to the
smartphone space.
NPR says, "The phone manufacturing factory of Microsoft in Bac Ninh, Vietnam, is managed by FIH Mobile. As per agreement between HMD, FIH and Nokia; FIH has acquired Nokia production facilities, global sales and distribution network from Microsoft. So, this plant may produce upcoming two new Nokia phones, expected to be launched later this year."
The Nokia brand, as rumoured, is returning to the mobile space to
make Android-powered smartphones and tablets. The news was confirmed in a
press release from the company, which is now owned by HMD, a new
company set up to enable the proliferation of Nokia-branded phones and
tablets.
Here’s the official line from HMD on what’s happening:
“HMD has been founded to provide a focused, independent home for a
full range of Nokia-branded feature phones, smartphones and tablets. To
complete its portfolio of Nokia branding rights, HMD announced today
that it has conditionally agreed to acquire from Microsoft the rights to
use the Nokia brand on feature phones, and certain related design
rights. The Microsoft transaction is expected to close in H2 2016.
Together these agreements would make HMD the sole global licensee for
all types of Nokia-branded mobile phones and tablets. HMD intends to
invest over USD 500 million over the next three years to support the
global marketing of Nokia-branded mobile phones and tablets, funded via
its investors and profits from the acquired feature phone business.”
Microsoft’s Nokia “thing” ends in the second half of 2016, leaving
the market wide open for new Nokia handsets. The composition of the HMD
is odd, to say the least. Nokia will not be investing any money in the
project but it will receive royalties and sit on the board of HMD’s
directors. Quite a few of Nokia’s old top brass will be returning to the
fold as well.
“This agreement will give HMD full operational control of sales,
marketing and distribution of Nokia-branded mobile phones and tablets,
with exclusive access to the pre-eminent global sales and distribution
network to be acquired from Microsoft by FIH, access to FIH’s
world-leading device manufacturing, supply chain and engineering
capabilities, and to its growing suite of proprietary mobile
technologies and components,” said HMD in a press release.
What this means is simple: Nokia WILL return with Android phones and
tablets, as well as wearables off the back of its Withings acquisition.
No doubt we’ll be hearing A LOT more about this and the future of Nokia
in the coming weeks and months.
Can Nokia carve a niche for itself in the Android space? I personally
think it can; the Nokia brand is strong and has a lot of history. A
strong release could certainly do well. But I do concede, as the
Telegraph notes below, that things won't exactly be EASY:
"Apple dominates the high-end, especially in the West, and Samsung is
a fierce competitor. Asian smartphone manufacturers – Oppo, Xiaomi,
Huawei, Vivo – are eating into the feature phone market that was Nokia’s
playground. Other respected names, such as Sony and LG, have struggled
to have a real impact on the market. Motorola and BlackBerry, two other
once-mighty phone makers, have not been able to trade on the back of
their legacies: there’s no immediate reason that Nokia should be any
different."
It added: "The smartphone market, now bereft of innovation, has
become ruthless, with profits difficult to come by. One suspects Nokia
has missed its opportunity. We should wish it all the best, but the odds
are stacked against it."
