- Nokia will return on the smartphone market in the first half of 2017
- Nokia granted HMD Global its license to use its brand and launch its first Nokia smartphone
- Exclusive Global Brand License given by Nokia to HMD will last for 10 years
Nokia will return on the smartphone market after the company granted HMD Global the license to its brand and launch its first Nokia smartphone in the first half of 2017; the company and its licensee said Thursday as per an InterAksyon story.
The licensee HMD global received the ‘go signal’ to proceed with the creation of smartphones with the Nokia brand after completing all necessary transactions with its Taiwanese manufacturing partner, FIH Mobile of FoxConn Technology Group, and with US tech giant Microsoft which had bought the unprofitable phone business from Nokia in 2014.
Nokia, in a statement, have given HMD an exclusive global brand license (excluding Japan) for the next 10 years to operate as the new home of their phones.
Way back 2014, giant company Microsoft ventured into phone manufacturing for $7.2 billion but proved short-lived last May after it announced it would sell its feature phone business to HMD Global and FIH Mobile for $350 million (329.4 million euros).
The giant company also let go of some 1,350 smartphone makers and former Nokia employees after it decided to end its smartphone manufacturing in Finland.
Nokia dealt it would not get back into smartphone production until the last quarter of 2016 when it sold its phone business to Microsoft. The restriction has already expired; therefore, HMD can begin producing new smartphone under the Nokia brand next year.
According to Nokia, their branded feature phones remain one of the most popular choices of mobile phones in many markets around the world today and HMD will continue to market them alongside a new range of smartphones and tablets to be announced later by HMD.
Nokia, which is today’s leading telecom equipment maker, will receive royalty payments for sales of each mobile phone and tablet sold under its brand as it is not HMD’s shareholder.