The 1865 founded company, this Finnish multinational has won hearts worldwide! Nokia Corporation is a major contributor to the world phone market! For a long period of time, it had owned the title of the largest vendor of telephones in the world. The company signed a pact with Microsoft in 2011 to use the Windows phone path for all its future devices. The transaction between the two companies, however, is speculated to meet an end by the second half of this year.
With a big league of competitors across, Nokia had disappeared from the telephone market for quite sometime. The Nokia branded phones have held a certain incomparable rapport with the users and supporters; and thus, as a surprise for all of them, the company has announced that it will return to the mobile market. Razmi Hadamus, president of the company was quoted as saying, "Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. 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. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model."
The company had signed an agreement which has rendered HMD global Oy its global license, which will give HMD the power and right to create phones and tablets branded as Nokia for the up coming ten years! This agreement covers branding rights and intellectual property licensing. In return of the sales, Nokia will be getting 'royalty payments' from HMD. The portfolio of the devices will be handled by the Android OS by Google.
Not only this, to make sure that the devices manufactured live upto the standard set by this immense company in the past, Nokia will be a part of the Board of Directors of HMD and will set “mandatory brand requirements and performance related provisions." HMD on the contrary is putting its best foot forward for this tie up which might prove to be extremely beneficial for the two companies and is thus planning to invest 500 million USD over the next three years for the project's growth.
Also according to another announcement which was made by FIH Mobile Limited (which is a subsidiary of Hon Hai Precision Industries), the remainder of Microsoft's assets of feature phone business (which incorporates manufacturing, distribution and sales will be inherited by FIH. In light of this, HMD and Nokia have signed an agreement with the above mentioned company to establish a framework for the growth of Nokia based phones.
Arto Nummela, CEO-designate of HMD, was quoted as stating, "We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers. 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."
On the other hand, Vincent Tong, Chairman of FIH, was captured saying, "We are looking forward to fostering a strong and long-term collaboration with HMD global and Nokia. We are impressed by the experience and expertise of the HMD management team and are committed to supporting them with our manufacturing, technology and supply chain capabilities, to capture market opportunities together in the future."
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