Nokia CEO confirms the company will return to making Smartphones

Until now Nokia have always denied rumours that the company planned to return to the Smartphone business. The Finnish phone company was bought by Microsoft in a deal announced in 2013,although due to regulatory issues it was April 2014 when the $7.2 billion deal was completed. Microsoft’s terms stipulated that Nokia could not use the brand on smartphones until quarter four of 2016 and on feature phones for 10 years. Following the acquisition Nokia’s CEO Stephen Elop was taken on by Microsoft to head the company’s newly formed Devices Group and several other Nokia executives went with him to Microsoft.

 

Speaking to German Magazine ‘Manager Magazin` Mr Suri said the company would not manufacture the smartphones but would design the hardware then License the Nokia name out, adding “we will look for suitable partners”. Nokia have already signed a brand –licensing agreement with Foxconn for their N1 tablet which went on sale in China.

This week Nokia signed a patent licensing agreement with LG in which LG will pay Nokia for use of its patents. Nokia is one of the largest Smartphone patent holders in the world with around 30,000 patents relating to 2G, 3G and 4G. This is the first such deal Nokia has signed up to since selling its phone business to Microsoft.

Nokia, at one time the world’s biggest Smartphone seller began to suffer when competition arose from Android and iOS devices. Nokia failed to innovate and lost market share to competitors including Apple's iPhone. By quarter four of 2012 Nokia's market share had dropped from 29% to just 3% and the company was in financial trouble. But the worlds one time favorite phone maker could bounce back into favour in 2016.

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