Nokia is reportedly hiring software experts and looking for sales partners in its plan to return to the mobile and consumer tech market. Nokia exited this market when it sold its mobile handset business to Microsoft in 2013.
Of course, Nokia is unable to re-enter the handset business until 2016 because of a non-compete deal with Microsoft, however, that doesn't mean the company is preparing for a handset release.
Nokia has already starting releasing products in the consumer market, just not when it comes to mobile handsets. For example, it launched a tablet called the N1 in China. It also recently released a "virtual reality camera" called OZO, designed to be able to capture content for virtual reality viewing. Last but not least is the Android Z Launcher, which essentially gives the smartphone it's installed on a different user interface.
Meanwhile, a number of job openings have popped up for Nokia's technologies division on LinkedIn, with many of these jobs being in product development and some of them being for Android engineers for Nokia devices. Nokia reportedly also planned to lay off 70 employees, but recent reports suggest that it will lay off closer to 35 people.
The once well-loved and respected Nokia does have a few tricks up its sleeve for when it does eventually make its re-entrance into the handset market. Nokia is known as a business with a treasure trove of patents, many of which were retained despite its sale of its handset business to Microsoft. It is likely that it will be putting many of these patents to good use, having invested billions upon billions of dollars in them over the past few decades.
It will certainly be difficult for Nokia to make its way back into the industry, with companies like Apple and Google dominating ever since the release of the first iPhone. Apple, in fact, makes around 90 percent of profits in the industry. Nokia says that it will not repeat its past mistakes in missing industry trends. To help soften the risks involved in the industry, Nokia will reportedly design new handsets with its brand, however, in exchange for royalties, it will then offer other companies the chance to manufacture and market the handsets. While this will be less profitable for the company, it will also be a lot less risky.
"They want to be innovative and seen as a company with long-term vision in the (tech) industry and having a foot in devices plays into this impression, even if it's not bringing massive revenue at the outset," said Sylvain Fabre, an analyst at Gartner in an interview with Reuters.
The strength of the Nokia brand name will certainly help the company in its re-entrance into the mobile handset business, however, only time will tell how much of an impact the company will make on the industry.
Via: Reuters
