After Nokia’s first attempt to impress customers failed, this brand is returning to the smartphone market with Android devices. The new products will be developed by Foxconn and Google, whereas the parent company will be HMD Global.
Ten years ago, Nokia was the dominant cellphone manufacturer on the market, but when smartphones were first introduced, the company decided to work with Microsoft. As it turned out, the Windows operating system was a major drawback because many customers were not impressed by its features.
Therefore, the Lumia line-up couldn’t stand its ground in front of smartphones running Android or iOS. Nokia sold all handset activities to Microsoft in 2014 and decided to stick to mobile network devices and other programs.
On the other hand, Microsoft made another attempt to sell Lumia smartphones, this time changing the brand and using its own name, but it was another fiasco, so the company decided to abandon the business for good this year.
The new parent company, HMD Global, will launch the first Nokia smartphone in 2017, this time using the Android operating system from Google. According to Arto Nummela, the head of the company, Nokia’s success will affect the yearly profit made by top brands, such as Samsung and Apple. He further says that it is questionable whether the current Apple and Samsung consumers are indeed loyal to these brands.
Until now, the Nokia smartphones manufactured by Microsoft have been quite cheap, especially in Eastern Europe, India, and Asia. The reason is that Microsoft hasn’t been investing much in this brand in recent years, so the smartphones’ price tag was around $20, ten times less than the average price of a smartphone manufactured by any other brand.
According to Ben Wood, CCS Insight analyst, smartphone companies with weaker brands must be careful because Nokia will sure represent a strong competition starting from next year.
He underlines that although it’s very difficult to launch a new brand on the smartphone market nowadays, Nokia brand is already widely popular, while it can also rely on the management experience of HMD Global officials.
CEO Nummela has announced that he wants his company to become one of the major competitors in this business among Apple and Samsung. The two companies currently have the largest customer-based communities.
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