Sound real good to be true, but it is. Nokia is going to return to the mobile and tablet market with a bang. This time, they’re not going at it alone. They’ve gotten help.
Two partners, HMD Global and FIH Mobile joins in the fight to restore the classic brand’s reputation and empire to the world yet again. This deal is pretty much talk of the down, as the partners seem to be connected with Nokia.
HMD is formed by ex-Nokia executives, who now own the rights to develop mobile devices and tablets under the Nokia-brand for the next decade. Apart from that, the rights for feature phones from Microsoft with the Nokia brand, so that they can complete the entire set of Nokia products for their portfolio.
The other partner, FIH Mobile (co-owned by Foxconn (the guys that make manufacture your iPads and PlayStations)), have bought over the remaining parts of the feature phone business that Microsoft still owned. Amongst the remaining parts include a manufacturing facility in Vietnam, as well as global distribution, fulfillment, and supply chain networks. For all these, Microsoft is to be paid USD$ 350 million (about RM 1.4 billion), which is expected to be paid in full in Q3/4 this year.
Nokia, along with their new partners, would be working towards producing Nokia mobile products to be sold globally. The tag-team partners would be putting their strengths together, with HMD spearheading global sales, marketing and distribution, and FIH to be in-charge of engineering, manufacturing and networking. With a planned investment of more than USD $500 million (RM 2 billion), HMD is poised to bring their products to their consumers within the next three years. What’s in it for Nokia is simple. Just royalty payments based on sales.
HMD is clearly confident that their Nokia-branded mobile products will be making a huge impact in the market by revealing that it has planned to invest more than USD 500 million (RM 2 billion) within the next three years in order to bring these devices to consumers. As for Nokia itself, the company will ultimately receive royalty payments from HMD based on product sales.
Finally, the dream of having a true Android based Nokia would become a reality.