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HMD global Oy is Nokia’s strategical masterstroke & ensures Nokia quality & feel in future devices

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!!

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Nayan
Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]
http://www.nokiapoweruser.com
  • Damocles

    One minute they are in and the next, they are not!
    What sort of businessmen are they?

  • Tiago Miguel Morgado Jorge

    Big news. I barelly can´t wait for it. Probably Withings products will aslo be sold by HDM. But if they will only licensee the standard patents, won´t that products have the Pureview technlogie, for example?

    • Kamal

      Nopes, Withings will be with Nokia Technologies. Nokia has even more advanced Imaging tech based on Graphene sensors.

      • Tiago Miguel Morgado Jorge

        I know that Withings wilI be part of Nokia Technologies. But I suppose that if HMD will sold the products conceived by Nokia Technologies because of it’s relation with costumers. It wouldn’t make sense to have two Nokias in contact with final clients. I also heard, the graphene studies by Nokia, that are in the forefront od tech, but only in comments. Is there credible official news about? Will HDM be able to use that and other innovative technologies from the past in it’s new products?

        • DBS

          HMD is just a “fictional” creation to allow Nokia to have a Devices & Services division but keep it separately from the Nokia Corporation. That way, if business goes wrong, any losses of HMD won’t affect the Nokia Corporation.
          But otherwise, HMD will be pretty much just another Nokia division. Nokia Technologies will be providing ALL the tech (old and new) to HMD and they’ll take care of the rest.
          There’s a reason why HMD is held by a private equity fund managed by a former Nokia executive, run by two ex-Nokia executives, and have Nokia “representatives” on the Board of Directors with “veto power” over products. 😉

          If HMD manages a successful return to mobile, then Nokia might consider “acquiring” it and integrating it with Nokia Technologies (or even as a new, separate division like the old D&S division was).

          • Tiago Miguel Morgado Jorge

            Thanks DBS! I had also suppose that, but I think that only time can confirm to all these suppositions. Anyway it’s the most logical answer. I’m expecting a true revolution in the mobile phone market with this comeback. Fingers crossed!

          • Rce

            Great explanation and one more thing this is the reason behind Micrsoft’s cancellation of Lumia 750,850 etc and ending the Lumia Brand name just before the re-entry of Nokia Brand name in Smartphone market..

  • Muhammed Jabir Osman

    YAY

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