It wasn't so long ago that Nokia (News - Alert) phones ruled the mobile device market. Most anyone who had a cell phone had a Nokia; even I have an old Nokia feature phone gathering dust in a drawer somewhere. With the rise of smartphones and next generation communications, Nokia's prominence as a mobile phone provider fell away, at least somewhat. After a series of deals, it's now making a new push on mobile devices with a new agreement with HMD Global Oy (HMD) that came into force recently.
The agreement itself has been active since May 31, though it didn't actually kick in until just recently. A series of transactions between HMD and both FIH Mobile Limited (a Hon Hai Precision subsidiary, commonly trading as the more familiarly-named Foxconn Technology Group (News - Alert)) and Microsoft allows HMD to be the new “home” of Nokia devices for the next 10 years, as the company will operate under “...an exclusive global license.”
Despite the massive onrush of smartphones into the market, Nokia feature phones are actually still attractive properties, particularly in emerging markets where smartphones are seldom available or priced out of reach of many users. HMD won't stop at making Nokia devices, though, as it's also poised to offer a new range of smartphones itself, along with a line of tablets, making it a complete operation covering just about every waterfront there is to cover.
Nokia Technologies' interim president Brad Rodriguez commented ,“We've been overwhelmed by the enthusiasm shown around the world for the return of the Nokia brand to smartphones. The HMD Global team has the ambition, talent and resources to bring a new generation of Nokia branded phones to market, and we wish them every success. I'm sure our millions of Nokia fans will be excited to see their new products!”
It would be easy here to wonder how next generation communications were supposed to advance if companies are still making feature phones an option, but we have to remember that not everyone can engage in next generation communications just yet anyway. Thus, the next generation must always be ready to accommodate the last generation, and help it along into the next. That's what Nokia is doing here, at least somewhat, by giving that necessary bridge to those who haven't made it into the next generation just yet.
With developing markets still getting in on the smartphone action, there will be at least some demand for feature phones for a while. Nokia might well corner that market, and give itself a great new funding source with its HMD license, even if it's just temporary.
Edited by
Alicia Young
