Nokia Plans on a Comeback in 2016
If you think Nokia is dead, think again. Nokia CEO Rajee Suri has confirmed that the Nokia brand will be returning. The CEO exclaimed that we’ll have a set of new Nokia handsets by year 2016.
Nokia and Microsoft
Nokia and Microsoft had been great partners for years. They have worked closely together on the company’s Lumia 1020 and Microsoft has made changes to the mobile operating system since then. Nokia was responsible for the hardware while Microsoft was the software in that hardware.
While Microsoft and Nokia were working closely together on the hardware and software side of things, it isn’t enough. So, Microsoft buys Nokia for $7.2 billion.
As we all know, Nokia sold of its devices and services to Microsoft in 2014 and they agreed that they can’t be legally involved in competing hardware until 2016. Microsoft acquired 8,500 design patents covering the phone manufacturing from Nokia.
Microsoft is also licensing another 30,000 “utility” patents from Nokia for 10 years with the option to renew in perpetuity.
Since the Microsoft takeover, we haven’t heard from Nokia and the newly released phones are now branded as Microsoft.
Rajeep Suri told Germany’s Manager Magazin, that the company intends on designing and licensing handsets next year and will look for suitable partners. He explained that they would simply look to design then make the brand name available to license.
They won’t release or mass manufacture the phone themselves, instead Nokia is teaming up with another company and lending the use of their name and design.
This is not that much of a surprise since even if the company is intending to sell Here maps for Business, Nokia has been keeping at hand in the mobile business. In fact, Nokia has been designing and selling Android tablet in China and launching its own Android launcher.
Nokia Phones in 2016
Nokia-branded phones that will be released in 2015 will not actually be made by Nokia. Also is it not yet confirmed if these phone will run Android or Windows Phone. However, based on the recent product by the company, the Nokia N1 tablet, it is clear that they will venture the Android market.
These phones are expected to compete to brands like Samsung with huge marketing budgets to flood the market with Nokia handsets from flagship to budget-friendly phones.
Stephen Elop and Nokia
Former Nokia CEO Stephen Elop has left Microsoft as a part of fresh reorganization from the company. Elop has been responsible for Microsoft’s Lumia devices after the acquisition of Nokia by Microsoft.
Nokia’s plan to return to phones was announced just a day after Stephen Elop left Microsoft.
Why it Matters
Before the brand was out of the market, Nokia was the largest handset maker in the world. They produce some of the world’s high quality phones that even if you turn on your old Nokia phone today, it works just like the first day you bought it. Made of high quality materials, and a long lasting battery that smartphones of today can’t beat Nokia was unbeatable during their time.
However, when iPhones arrive, Nokia wasn’t able to adapt to the smartphone industry. When it finally decided to enter the smartphone industry, the company has made a bad choice by producing Windows Phones that were very far off to compete with Apple and even Android phones. Nevertheless, Nokia was always hailed for its quality designs.
It’s great to see that one of the top brands is entering the market once again. However, they have decided to close its doors in creating a new platform again.
The question is who is likely to be Nokia’s partners? Will it be just another Microsoft deal where once they’ve partnered with Microsoft, they’ll opt to get rid of them?
As with business partners, it is likely that Foxconn will partner with the company as they have already been working together on the N1. As we’ve seen in the tablet, Nokia’s future designs will be on the minimalist side, similar to Apple’s concept. If that’s the case, then it will have a very high demand not just in Europe, but all over the world.
And if they shift from Android to Microsoft as a mobile OS, Nokia will be a huge demand. Coming from them, we expect high quality devices with excellent battery life.