Like many times we told you exclusively that Foxconn will be the first Nokia partner to manufacture its Android smartphones in future. But Nokia has played a strategical masterstroke by making Foxconn the only manufacturing partner but still keeping the full control of Sales, Marketing and Distribution via creation of HMD Global Oy. From the Nokia Press release,
HMD has been founded to provide a focused, independent home for a full range of Nokia-branded feature phones, smartphones and tablets.
This agreement will give HMD full operational control of sales, marketing and distribution of Nokia-branded mobile phones and tablets, with exclusive access to the pre-eminent global sales and distribution network to be acquired from Microsoft by FIH, access to FIH’s world-leading device manufacturing, supply chain and engineering capabilities, and to its growing suite of proprietary mobile technologies and components.
HMD will be led by CEO Arto Nummela, who previously held senior positions at Nokia and is currently the head of Microsoft’s Mobile Devices business for Greater Asia, Middle East and Africa, as well as Microsoft’s global Feature Phones business. So, in a way who better than him to lead the new Nokia phones business.
HMD would be led, once the Microsoft transaction closes, by Arto Nummela as CEO, who previously held senior positions at Nokia and is currently the head of Microsoft’s Mobile Devices business for Greater Asia, Middle East and Africa, as well as Microsoft’s global Feature Phones business. HMD’s president on closing would be Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, and previously held key roles at Nokia, HTC and other global brands.
With CEO Arto Nummela at helm it will be easier for Nokia to ensure quality by “setting mandatory brand requirements and performance related provisions to ensure that all Nokia-branded products exemplify consumer expectations of Nokia devices, including quality, design and consumer focused innovation”
Nokia will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments, but will not be making a financial investment or holding equity in HMD. Nokia Technologies will take a seat on the Board of Directors of HMD and set mandatory brand requirements and performance related provisions to ensure that all Nokia-branded products exemplify consumer expectations of Nokia devices, including quality, design and consumer focused innovation.
So, in a way Nokia has already answered the questions like “Will it be a true Nokia phone??”. The future Nokia phones will use original Nokia manufacturing, design, innovation, quality control, marketing, sales and after-sales services. It will be controlled and monitored by Nokia and ex-Nokia teams and leadership. So, much Nokianess!!
