Nokia CEO Suri plans return to the mobile phone business by 2016
Nokia CEO Rajeev Suri is planning to re-enter the mobile phone business. Nokia sold its phone business to Microsoft in 2014 after years of declining sales as it failed to keep up pace with the latest Trends in the Smartphone Market.
“We are to look for suitable partners,” Suri said in an interview with the manager magazine and announced it on to license the brand from 2016 to mobile phone manufacturers. Still, As per the agreement with Microsoft, Nokia can not sell mobile phones.
The Finnish company had sold in 2013 its cell phone business to Microsoft and signed a contract agreeing to stay away until the second half of 2016. In April, Nokia announced a 15.6 billion-euro ($17.8 billion) takeover of Alcatel-Lucent in a bid to boost the network equipment business that is now its main stream.
Nokia is also promoting mapping business with the luxury car makers. Upon being asked whether there were any preferred bidders for the high-definition maps business, Suri told the magazine, “Anybody who can improve the business in the long run is a good buyer.”
After the expiry of the clause Nokia will market chart show his former partner in the business but challenging: “Microsoft manufactures mobile phones, we would only design and make the brand name available for license ” Suri said in the conversation further.
Nokia has been granted a trademark license for the production of tablets of the Taiwanese iPhone manufacturer Foxconn.
This announcement by Nokia came immediately after Microsoft major reshuffle in the Top Management and taking out Nokia legacy from the company, which clearly indicates Microsoft is planning to stick to its core Business and going out of Smartphone Business.
Analysts expect Microsoft to write off all or part of the $7.2 billion it paid for Nokia’s handset unit, a deal that left Microsoft with a money-losing business and only 3 percent of the smartphone market.