Nokia exited the cell phone business after it announced the sale of its smartphone division to Microsoft in September 2013. The deal worth $7.2 billion was completed in April 2014.
Now, however, the Finnish company has revealed plans to re-enter the cell phone business, but with the right partner.
Following the Microsoft deal, Nokia gave up the rights to make, market and sell smartphones. Nokia was a well-known brand, on the top of the mobile phone market for about 14 years. However, the company lost a lot of its market share to rivals such as Apple, Samsung, HTC and more. Still, the Nokia brand name is still recognized by millions of people worldwide.
Many rumors have been circulating since Nokia's exit from the phone market, chiefly that the company would be making a comeback. Now, Nokia has issued a statement that it may re-enter the phone business in the near term.
"The right path back to mobile phones for Nokia is through a brand-licensing model. That means identifying a partner that can be responsible for all of the manufacturing, sales, marketing and customer support for a product," said Nokia in a statement.
Nokia suggests that if it finds the right partner that can take all responsibilities of making, selling and marketing handsets, then the company will work closely in guiding them in design and technology differentiation.
The Finnish company also pointed out that, as per the agreement with Microsoft, Nokia can enter into a partnership with another company to make, sell and market handsets; however, not before the final quarter of 2016.
Nokia is still linked to the handset market via location and mobile mapping services, mobile network infrastructure and technology development and licensing.
It will be a three-year gap if Nokia plans to re-enter the mobile business in Q4 2016. Although many mobile customers will welcome a new Nokia handset, the company will be subject to stiff competition from rivals.
Photo: John Karakatsanis | Flickr
