Nokia signs the agreement that will enable HMD global to produce new mobile phones and tablets for the next ten years. HMD is a newly founded company based in Finland.
The Nokia brand is returning to the mobile phone and tablet market. https://t.co/n2lhWmxjYm
— Nokia (@nokia) May 18, 2016
HMD announced today that it has agreed to acquire from Microsoft the rights to use the Nokia brand name on feature phones. Today, Microsoft announced that it is selling its Nokia budget phone business to FIH Mobile Ltd (Foxconn) and HMD. The company is selling budget phone division to Foxconn for $350 million.
Together these agreements would make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets. Nokia smartphones and tablets will come with Android OS.
Ramzi Haidamus, president of Nokia Technologies, said:
“Today marks the beginning of an exciting new chapter for our brand. HMD plans to produce mobile phones and tablets that can leverage and grow the value of the our brand in global markets. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”
Arto Nummela, CEO-designate of HMD, said:
“We will be completely focused on creating a unified range of mobile phones and tablets, which we know will resonate with consumers. Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the brand and our extensive experience in sales and marketing. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want.”
