"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", Ramzi Haidamus, the president of Nokia Technologies, in the statement issued to ZDNet. 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.
Two years after the name Nokia basically disappeared from the smartphone business, it will make a return. "Unfortunately, to date, they haven't really created any growth waves yet".
The venture will make smartphones running Android, and also plans tablets and cheaper, so-called feature phones. The company's goal was to re-enter the business in a way that required much less capital investment and reduced risk.
The firm has price to sales ratio of 0.88 and its price to book per share was 3.48. HMD will invest $500 million in the next three years.
Now, from what we have come to understand, HMD Global will be focusing more on Android than anything else going forward, but we're sure Windows 10 Mobile will come into play if and when Microsoft manages to grow the operating system's market share from nearly zero to hero.
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"It is very unlikely that Nokia will be able to revive its business in the US market".
"It's going to take more than a well-known brand name in this competitive market", she said.
Nokia, whose global market share in handsets peaked at around 40 percent in 2008, said its brand remained widely recognised, especially in developing markets. "I am not sure that carriers would bet high on the Nokia phones", she told the E-Commerce Times.
Despite this trend, a large - though shrinking - market continues to exist for non-smart, and usually more affordable, feature phones. Its latest closing price has a distance of -8.36% from SMA20 and is -10.99% down than SMA50. In addition, HMD Global will also absorb the entire 4,500 former employees of Microsoft's mobile phone division.
Feature phones made up 87 percent of mobile phone shipments during the first quarter 2016. They lost everything and were then acquired by Microsoft. "I don't see a partnership down the road either as none of the OEMs are interested in licensing Windows 10 for phones". The deal will be done in the second half of 2016, after which HMD will be the only global licensee for all types of Nokia branded mobiles.