why is back to talk about the return of the brand to the world of smart phones
Nokia returns to the mobile market next year with a line of Android smartphones. What surprise? Not: anyone who has followed the course of the company over the past year knows, the company had announced its intention to do exactly that, and was searching for a partner; that in may of this year found: Microsoft sold their moribund division of cellular HMD , a Finnish firm that teamed with Foxconn to produce handsets with the brand Nokia. HMD also has the rights to use the trademark Nokia in smartphones for 10 years.
But don’t was that Microsoft bought Nokia? do Not; in 2013, Nokia sold to Microsoft its mobile telephone division, which included the Lumia -today’s brand – Microsoft and the cell-conventional brand Nokia-; meanwhile, the Finnish dedicated himself to his other business: telecommunication (bought by Alcatel-Lucent to expand its presence in the sector), technology wearable and health (bought the French Withings, which makes watches, connected devices and home health monitoring) and the extension of its brand and its patents (search royalties by licensing, which is what it is, in short, the agreement with HMD).
But then what gives Nokia? IDM manages license the brand Nokia for smartphones, together with FIH, a subsidiary of Foxconn, who will manufacture the phones (and bear the greater part of commercial risk). Nokia (the original) still has a design team in San Diego, where she works as part of the team that designed the Nokia N9 (including the argentinian Axel Meyer). According to the agreement signed by Nokia and HMD, the first gives the design and the choice of the components of the smartphone, and HMD is responsible for you to make it and sell it. Nokia receives royalties from the sale of each smartphone, and each cell conventional
What will bring these new phones? it is Not known; all rumors point to that will be presented next march at the Mobile World Congress in Barcelona, and that will be more of a device, high-end, and middle, all running Android and Z Launcher (the application launcher, which the company developed for its tablet N1). It is unlikely to offer anything particularly revolutionary; the investment required to achieve this is, for the time being, outside the scope of what Nokia -and HMD, which promised to invest $ 500 million in 3 years – can be achieved.
What are the chances they have in the market? Will you be to be a giant? Is unlikely: either you wait for a day to the other are carving between the main manufacturers in the sector do not know the economics of the mobile telephony market , in which only a few manage to profit decent (almost everything is in the hands of Apple and Samsung; the rest is sold almost at cost); half of the sales is in the hands of 5 brands (Samsung, Apple, Huawei, and, this year, Oppo and Vivo); HTC and OnePlus are two brands that are considered to be among the best in the Android world, in terms of design and hardware, and sold less than 2 million computers per year; Sony sold 10 million in three quarters; LG, with 13.5 million units sold in the last quarter, it lost $ 400 million during that period. Samsung has around 70 million units per quarter.
At the same time, the advantage of this system of licensing and patents allows a company to be handled with minimum margins and reduce investment in capital. No need to sell millions. And the brand Nokia, though battered, has your weight: the Lumia, for example, were 10% of sales of smartphones in our country in 2016; the mark ends up fourth behind Samsung, LG and Lenovo (Motorola).
what Are the only smartphones? Not, and that is probably the segment that will give more volume to the company; according to the consulting firms Gartner and IDC, this year will be sent to 1500 million smartphones and 400 million cell phones conventional, a segment where Nokia (until now part of Microsoft) followed by presenting models with a market share acceptable.
what it Is as what makes BlackBerry? Not; BlackBerry went for a similar strategy (licensing their brand, to the design of the equipment, but not to manufacture it), and now took a step further: no longer manufactures or designs the phones, but that has an agreement with TCL (owner of Alcatel) to use some of his equipment and putting his own mark. Unlike Nokia, does not have control over the design (in fact, the BlackBerry DTEK60 sold as well as the Alcatel Idol 4S) or choose which components to use, and makes quality control, all things that -in theory – to Nokia (the original) yes you will do with the computers Nokia licensed.
If all of this was already known, why there is now talk of the new Nokia? Because the company issued a press release today in which it announces that finally enabled in your site a section for phones , which is managed by HMD, but all in the family: the executives of the latter company come from Nokia and Microsoft.
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