You are here: Home » Reuters » News
Business Standard

Nokia brand-phones poised for comeback as HMD takes charge

Reuters  |  FRANKFURT/HELSINKI 

By Eric Auchard and Jussi Rosendahl

FRANKFURT/HELSINKI (Reuters) - Nokia-branded mobile phones are about to make a comeback via a new venture that will reunite the brand with veteran executives who aim to move into smartphones capitalising on an existing operation that sells low-cost basic phones.

HMD Global, a new Finnish company set up to revive the phone brand, on Thursday took over the basic phone business which sold to Microsoft in 2014. the company now largely makes telecom network equipment.

HMD, officially founded six months ago, opens for business this month. It has several advantages over other start-ups, including Nokia's strong global brand, experienced management and Foxconn as a manufacturing partner.

But it also has hurdles to overcome if it is to break into a crowded market dominated by models from scores of different players using Google's Android platform.

"The barriers to entry for the Android phone space are low," mobile phone analyst Ben Wood of CCS Insight said. "What HMD has is the brand and management experience. The key to its success will be driving scale."

HMD has a licensing deal with giving it the sole use of the brand on mobile phones and tablets for the next decade and key cellular patent licences, for which it will pay royalties to Nokia, which otherwise has no investment in HMD.

As part of the plan, HMD has agreed to rely on Foxconn, the world's largest contract manufacturer, to manufacture all its devices.

HMD said it plans to introduce new Android smartphones in the first half of 2017.

"We want to be one of the key competitive players in the business," chief executive Arto Nummela told Reuters. Samsung and Apple are now big players, although Chinese brands like Huawei are closing the gap.

Rather than building its own system, the company is working in close partnership with Android's creator's, Google.

Nummela said he believed his team's extensive industry relationships with carriers and retailers, powered by the brand, could help them quickly capture share by convincing entry-level buyers of its feature phones to upgrade in markets like India, Indonesia and Russia.

"We really see the opportunity to create some space for ourselves on the (store) shelves," Nummela said. "Consumers may be carrying different smartphones now, but are they really in love and loyalty to those brands?"

Nummela is a long-time sales and product development executive, who moved to Microsoft when the phone business was sold.

HMD President Florian Seiche is a mobile phone industry veteran who previously worked at Siemens, Orange, HTC and Nokia. Chief Marketing Officer Pekka Rantala is a former CEO of Angry Birds game maker Rovio, as well as a veteran.

"We are not going to skip any markets, in the long term," Seiche said of its global game-plan, adding that HMD has already set up offices in 40 locations around the world.

(Editing by Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

Nokia brand-phones poised for comeback as HMD takes charge

FRANKFURT/HELSINKI (Reuters) - Nokia-branded mobile phones are about to make a comeback via a new venture that will reunite the Nokia brand with veteran Nokia executives who aim to move into smartphones capitalising on an existing operation that sells low-cost basic phones.

By Eric Auchard and Jussi Rosendahl

FRANKFURT/HELSINKI (Reuters) - Nokia-branded mobile phones are about to make a comeback via a new venture that will reunite the brand with veteran executives who aim to move into smartphones capitalising on an existing operation that sells low-cost basic phones.

HMD Global, a new Finnish company set up to revive the phone brand, on Thursday took over the basic phone business which sold to Microsoft in 2014. the company now largely makes telecom network equipment.

HMD, officially founded six months ago, opens for business this month. It has several advantages over other start-ups, including Nokia's strong global brand, experienced management and Foxconn as a manufacturing partner.

But it also has hurdles to overcome if it is to break into a crowded market dominated by models from scores of different players using Google's Android platform.

"The barriers to entry for the Android phone space are low," mobile phone analyst Ben Wood of CCS Insight said. "What HMD has is the brand and management experience. The key to its success will be driving scale."

HMD has a licensing deal with giving it the sole use of the brand on mobile phones and tablets for the next decade and key cellular patent licences, for which it will pay royalties to Nokia, which otherwise has no investment in HMD.

As part of the plan, HMD has agreed to rely on Foxconn, the world's largest contract manufacturer, to manufacture all its devices.

HMD said it plans to introduce new Android smartphones in the first half of 2017.

"We want to be one of the key competitive players in the business," chief executive Arto Nummela told Reuters. Samsung and Apple are now big players, although Chinese brands like Huawei are closing the gap.

Rather than building its own system, the company is working in close partnership with Android's creator's, Google.

Nummela said he believed his team's extensive industry relationships with carriers and retailers, powered by the brand, could help them quickly capture share by convincing entry-level buyers of its feature phones to upgrade in markets like India, Indonesia and Russia.

"We really see the opportunity to create some space for ourselves on the (store) shelves," Nummela said. "Consumers may be carrying different smartphones now, but are they really in love and loyalty to those brands?"

Nummela is a long-time sales and product development executive, who moved to Microsoft when the phone business was sold.

HMD President Florian Seiche is a mobile phone industry veteran who previously worked at Siemens, Orange, HTC and Nokia. Chief Marketing Officer Pekka Rantala is a former CEO of Angry Birds game maker Rovio, as well as a veteran.

"We are not going to skip any markets, in the long term," Seiche said of its global game-plan, adding that HMD has already set up offices in 40 locations around the world.

(Editing by Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Nokia brand-phones poised for comeback as HMD takes charge

By Eric Auchard and Jussi Rosendahl

FRANKFURT/HELSINKI (Reuters) - Nokia-branded mobile phones are about to make a comeback via a new venture that will reunite the brand with veteran executives who aim to move into smartphones capitalising on an existing operation that sells low-cost basic phones.

HMD Global, a new Finnish company set up to revive the phone brand, on Thursday took over the basic phone business which sold to Microsoft in 2014. the company now largely makes telecom network equipment.

HMD, officially founded six months ago, opens for business this month. It has several advantages over other start-ups, including Nokia's strong global brand, experienced management and Foxconn as a manufacturing partner.

But it also has hurdles to overcome if it is to break into a crowded market dominated by models from scores of different players using Google's Android platform.

"The barriers to entry for the Android phone space are low," mobile phone analyst Ben Wood of CCS Insight said. "What HMD has is the brand and management experience. The key to its success will be driving scale."

HMD has a licensing deal with giving it the sole use of the brand on mobile phones and tablets for the next decade and key cellular patent licences, for which it will pay royalties to Nokia, which otherwise has no investment in HMD.

As part of the plan, HMD has agreed to rely on Foxconn, the world's largest contract manufacturer, to manufacture all its devices.

HMD said it plans to introduce new Android smartphones in the first half of 2017.

"We want to be one of the key competitive players in the business," chief executive Arto Nummela told Reuters. Samsung and Apple are now big players, although Chinese brands like Huawei are closing the gap.

Rather than building its own system, the company is working in close partnership with Android's creator's, Google.

Nummela said he believed his team's extensive industry relationships with carriers and retailers, powered by the brand, could help them quickly capture share by convincing entry-level buyers of its feature phones to upgrade in markets like India, Indonesia and Russia.

"We really see the opportunity to create some space for ourselves on the (store) shelves," Nummela said. "Consumers may be carrying different smartphones now, but are they really in love and loyalty to those brands?"

Nummela is a long-time sales and product development executive, who moved to Microsoft when the phone business was sold.

HMD President Florian Seiche is a mobile phone industry veteran who previously worked at Siemens, Orange, HTC and Nokia. Chief Marketing Officer Pekka Rantala is a former CEO of Angry Birds game maker Rovio, as well as a veteran.

"We are not going to skip any markets, in the long term," Seiche said of its global game-plan, adding that HMD has already set up offices in 40 locations around the world.

(Editing by Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard