The mobile handset maker from Finland, which used to be a giant once, Nokia Corporation (HEL:NOKIA) is bringing back their phones. In fact, the phones are already on sale at their website. For now, though, the range will be limited to only a few basic models. That, however, will change soon when the business adds their android-powered smartphones and tablets.
This is expected to happen early next year. It is likely that a range of android smartphones will be launched in early 2017.
HMD Global to Bring Out the Nokia Branded Phones
The comeback story is thanks to a deal with a small team located just outside Helsinki. Headed by veteran Nokia executives, HMD Global was set up for reviving the Nokia brand. HMD Global has already taken over the phone business, which the company sold in 2014 to Microsoft Corporation (NASDAQ:MSF). Nokia presently mostly makes equipment for telecom networks.
However, Microsoft soon discovered that the purchase was a disaster because Nokia Windows could not impress buyers. Apple’s iOS and Android had already captured the market. Sales of the Nokia branded phones were declining by about 15 percent a year.
It could be a success once more as the Nokia brand is still strong. The management is experienced as well because many of the workers are veterans with Nokia. Plus, they also have Foxconn as a manufacturing partner.
The HMD Chief Executive is Hopeful
Arto Nummela, who is HMD Global’s Chief Executive, said speaking to Reuters, “We want to be one of the key competitive players in the smartphone business”.
There is opportunity to create space for the Nokia brand on the shelves, he added. “Consumers may be carrying different smartphones now, but are they really in love and loyalty to those brands”?
Arto Nummela has worked as a sales and product development executive with Nokia for long, before moving to Microsoft when the Finnish company sold their phone business.
But the going may not be easy for the Nokia branded phones. The smartphone market has become crowded. There is Google’s android platform. There is Samsung and Apple and the Chinese players too such as Huawei. Plus, the Nokia brand, which people still remember, has to be introduced once more. This could be a marketing challenge.
However, having said this, the Nokia (HEL:NOKIA) brand has a long history of 150 years. This makes both the Finnish manufacturer and HMD Global hopeful.