Nokia, now devoid of any smartphone business, reported its latest financial results this week. Profitable and seemingly healthy with US$4.18 billion in revenues and a net profit of US$946 million, the company’s executives talked about the strength of the Nokia brand on the earnings call that followed and dropped a hint that a return to mobile devices is not out of the question. But not just yet.
Speaking about the company’s brand, Timo Ihamuotila, EVP and Group CFO, said, “we have recognized that Nokia brand is the most valuable from recognition perspective in the area of mobile phones and mobile devices. And there we cannot go yet at the moment.”
Is this a hint that the company is already planning a return to smartphones? Recent moves such as the launch of HERE Maps for Android and the Z launcher make it clear that it may be out of the smartphone hardware business but it is keeping a toe in on the software side.
Should Nokia make a return to smartphones, it appears clear that it will do so with the Nokia brand name. If so, such a move will not happen until January 1, 2016 at the earliest. Terms of the Nokia Devices & Services division sale to Microsoft include one whereby:
Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015.
Do you think the Finnish manufacturer will make a return to smartphones in 2016?
Sources : Seeking Alpha // NPU