This Explanation Problem Back to Nokia Mobile Phone Market

This Explanation Problem Back to Nokia Mobile Phone Market

This explanation Problem Back to Nokia Mobile Phone Market - The latest news from Nokia has announced plans to return to the market of mobile phones and tablets. They have prepared everything carefully and collaborate with other companies to pave the big plans. Nokia explained that under the agreement includes the right brand and licensing of intellectual property, Nokia Technologies will provide the exclusive global license on a global HMD Oy (HMD), a new company in Finland, to create Nokia phones and tablets over the next 10 years.

Nokia Technologies will receive royalties from sales of HMD Nokia brand mobile products, including the brand and intellectual property rights. HMD established as 'house' independent and focus on a series of featue phone, smartphone and tablet brand Nokia.

HMD announced it has agreed to acquire the rights from Microsoft, to be able to use the Nokia brand and certain rights related design. Purchases made by Microsoft is expected to close in the second half of 2016.

This deal makes global HMD holds a single license for all types of mobile phones and tablet brand Nokia. HMD intend to invest more than USD 500 million over the next 3 years to support global marketing Nokia-branded phones and tablets. No doubt also the operating system used is Android.

The remainder of the assets of the features Microsoft's mobile phone business, including manufacturing, sales and distribution, will be acquired by FIH Moblie Limted, a subsidiary of Foxconn. HMD and Nokia Technologies agreed with the FIH to set up a framework of collaboration to support the development of global business Nokia brand phones and tablets.

Nokia will give HMD mark rights and licenses to essential patents from cellular standard, but the company will not make a financial investment or have equity in HMD. Nokia Technologies will sit on the Board of Directors of HMD.

Immediately after completion of the transaction with Microsoft, HMD will be led by Arto Nummela as CEO, who previously held several senior positions at Nokia and now is the leader of Microsoft's Mobile Devices business for the Great Asian, Middle East and Africa.