While Microsoft recently launched its first Lumia smartphone without Nokia branding, the Lumia 535, Finnish telecommunications giant Nokia on the other hand has announced that it will license its brand to third-party manufacturers for different devices and products.
Ramzi Haidamus, President of Nokia Technologies, also announced that Nokia has the 98th most valuable brand name in the world worth $3.2 billion (roughly Rs. 19,700 crores). Notably, after selling its devices and services division to Microsoft, an acquisition that was completed in April this year, Nokia is not allowed to use its brand on any smartphones until Q4 2016, and on any feature phones for next 10 years.
However, this leaves the company free to use it on non-phone products. Haidamus, in a presentation shared on the company site (via The Verge), says that the company will use its Nokia moniker on those "areas where the brand is relevant".
Haidamus added that third-party manufacturers' products being eyed for Nokia branding would would have to "look and feel just like Nokia built it." It is worth noting that the firm has its own prototyping team, which will make concept products, demonstrate it to customers directly and license it to third-party manufacturers. It will also look to leverage its know-how, apart from its massive patent portfolio.
Also notable, is the recent announcement by Rajeev Suri, Nokia's Chief Executive, when telling investors the firm will look to licensing the brand name to other firms rather than starting up a new handset business itself.
Haidamus also added that he aims to bring back Nokia before it loses its shine in the market. "We have a very valuable brand," he stated. "Yes it is diminishing in value, and that's why it is important that we reverse that trend very quickly, imminently."
In addition, Nokia's Product Business Head, Sebastian Nystrom, will also be conducting a session named "What's next for Nokia" on Tuesday (2:55pm IST) at the ongoing Slush Conference in Finland, where he is expected to reveal a new product lineup.
Written with agency inputs.
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