Despite suspending in producing for a long time, Nokia logo still maintains its heat. However, will Nokia brand regain its aura when reuniting with the user in 2017?
The premise for the comeback of the Nokia brand imprinted by the three companies: Nokia Technologies, HMD and Foxconn.
In 2016, Microsoft signed an agreement to sell an array successful feature phones for FIH Mobile, a subsidiary of Honhai / Foxconn. In parallel, Global HMD, a Finnish company founded by former employees of Nokia, has won exclusive rights phone business, Nokia-branded tablet in the next 10 years. Microsoft will receive 350 million dollars from the two companies over the deal.
This transaction will allow Foxconn and HDM to produce and selling feature phone, smartphone and tablet under the name of Nokia brand.
HMD Global becomes the only company to be granted for all phones and tablets branded Nokia. Nokia Technologies will hold five seats on the executive board of the HMD.
A subsidiary of Nokia will establish mandatory requirements of the brand and the activity regulations related to the Nokia brand. Besides, the company will control the quality, design and features of the device when the device is manufactured. HMD will receive the brand, the patents in exchange for the payment of copyright for Nokia Technologies.
HDM will have the right to control selling activities, marketing and distribution phones and tablets Nokia brands. Foxconn will become exclusive manufacturer of branded Nokia devices.
Nokia is not a shareholder in HMD, but will receive royalty payments for sales of each mobile phone and tablet sold under its brand.