Nokia announced that a newly-established, independent firm called HMD will begin offering Nokia-branded basic and smartphones as well as tablets. The new devices will be based on the Android operating system
A startup called HMD Global (Helsinki, Finland) has been formed to takeover the Nokia brand for mobile phones and tablet computers and has said it intends to spend $500 million marketing Nokia as an Android-based mobile device over the next three years.
The new firm will be headed by former Nokia executive Arto Nummela. “We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers,” says Nummela. “Branding has become a critical differentiator in mobile phones, which is why our business model is centred on the unique asset of the Nokia brand, and our extensive experience in sales and marketing,” he adds.
HMD is owned by Smart Connect LP, a private equity fund run by another former Nokia boss, Jean-François Baril. He was Senior Vice President and CPO at Nokia from 1999 to 2012. HMD will have a 10-year exclusive right to use the Nokia trademark for mobile phones and tablets.
Microsoft has simultaneously sold the rights to produce Nokia-branded entry-level feature phones to HMD and FIH Mobile, a subsidiary of Taiwan’s Foxconn. That deal was worth 350 million US dollars.