On Wednesday, Nokia announced its reappearing to the tablet and mobile phone business after a more favourable agreement was reached with Microsoft to sell its FIG Mobile and HMD Global entry level phone business for $350 million. According to Microsoft the deal includes selling its manufacturing facility Hanoi, Vietnam to FIH Mobile. FIH Mobile is a unit of Foxconn Technology/Hon Hai and the current employees will have the chance to work for HMD Global or FIH Mobile.
HMD, which is recently launched company will be granted an exclusive license by Nokia to develop Nokia branded tablets and phones for ten years. Royalty payments will be made to Nokia from HMD for device sales, covering both the intellectual and brand property rights. The planned investment from HMD is estimated at over $500 million across a period of three years in aid to market and support Nokia devices globally; profits and monies from investors will pay for the new business.
Ramzi Haidamus the president of Nokia Technologies announced that it the start of a new era for the Nokia brand and that Nokia remains an iconic name in the industry. HMD will produce tablets and mobile phones while growing the Nokia brand value in global markets. The new formed company HMD will be run by Arto Nummela, a senior executive that was previously the head of Microsoft mobile in Asia, Africa and the Middle East. The president of HMD, Florian Seiche also brings a strong background to the company, which includes experience as the senior vice president for Microsoft Mobile in marketing and sales in Europe and being a former executive at Nokia.
Finally Nokia found a new way to get back into the mobile business facing competing brands such as Sams
ung, Apple and Google, currently domination the mobile market, said Jeff Kagan. After Nokia decided to sell its battling business to Microsoft it has been struggling to return to the market. Since the sale in 2013, Nokia was in a non-compete position according to IHS Technology. HMD will target the market with confidence as the Nokia brand is still recognized even when only 400 million units were shipped globally in 2015.