Nokia’s CEO: We will help #HMD design and market Nokia-branded devices

rajeev-suri-nokia-ceo

Nokia’s CEO Rajeev Suri in a short interview with Bloomberg talked about the integration of Alcatel-Lucent with Nokia, returning the Nokia brand to the mobile space with HMD Global, and the future of the Nokia OZO VR camera. You can check the interview here.

The most interesting part in the six-minute long interview was an official confirmation that Nokia indeed will help HMD design and market Nokia-branded devices. Nokia will support HMD, but it will not manufacture or distribute the products. Nokia’s business model is licencing its brand and patents to HMD global, for which it will receive royalties per sold device.

Proof: #Nokia on #Android won’t be another “generic smartphone” @nokiatech

About OZO, Suri said that Nokia’s aim is to bring the device from the high end professional camera market to ‘prosumer’ and enthusiast segment of the market. That can only be achieved by cutting prices or introducing a more affordable VR camera.

Nokia set to return to Mobile market

Suri also said that Nokia’s brand strategy with HMD will help Nokia’s devices in the digital health segment (Withings) and in the VR segment. A premium brand in the smartphone world will raise Nokia’s brand value in other segments of the consumer market.

Nokia Huwaei Ericsson

Suri is very pleased with the Alcatel-Lucent integration. The cost synergies were raised from €900 million in 2019 to €1.2 billion in 2018. Nokia is the second largest company in the wireless equipment market with a market share of 25.9% – 2.9% ahead of Huawei, and 2.2% behind Ericsson.

Altogether, exciting times are ahead of us. 🙂

  • PNHD

    Nokia gives design imput on the products and is licensing the brand and tech from their r&d labs. HMD of course designs the products and are in charge of strategy and the line-up. After the work is done Nokia approves the final products if they are in tone with the Nokia level of quality. Then manufacturing goes to Foxconn via FIH in the former Nokia Vietnam factories. HMD and Nokia are responsible for quality testing. Once the products come out the assembly line they are distributed through former Nokia sales channels that are also now owned by FIH. The marketing will be done by HMD with imput from Nokia. Nokia then gets royalties for every device sold.

    And since HMD is owned by an investment fund, the end goal for that fund will be to make it a profitable business that can then be sold to bring profits to the investors. And logically Nokia will be the one to acquire HMD. This of course if things go well.

    I’m also glad to read in the article that they are pursuing a joint brand strategy between HMD Nokia phones, Withings smart products and OZO. That means we will see them all together as a big product familly at trade shows and in stores, similar to other competing brands and their products.

    But all of this takes time. A while back i read an interview with either Ramzi or the Withings ceo( can’t remember which of them) and he said that the products Nokia Technologies in the health space weren’t advancing as fast as needed and they were cancelled. And now the Withings ceo will be in charge of merging the tech from those products with Withings tech. Since the acquisition barely finalized a few months back the development of new products will probably take another year and we’ll see them in q4 2017. This will probably coincide with another OZO release that is prosumer oriented. And of course it will be the perfect opportunity to launch the new phones along the entire family of products with a big bang. Similar to how Microsoft launched the Lumias, Surface and Surface Book last year. They can’t afford to do small announcements. They need toi show the world they are back with a big entrance and something to impress us

    And this means that we won’t see any new Nokia phones at MWC next year. It’s just too soon for that since HMD is building the company right now and is consolidating their relationship with Nokia. They need to have everything operating at 100%. Not just creating the phones, but putting everything else in place, fine tune the distribution, marketing, renew ties with worldwide carriers and partners. This doesn’t happen overnight. So no new Nokia phones in the immediate future except future phones.

    • I agree, but hope for a solid smartphone sooner. If we look at the Android tablet Nokia N1 there are reasons we truly can have high hopes about new devices. N1 was in a relatively short time developed and it was a test of Nokia’s new business model and Foxconn capabilities in manufacturing and distribution. N1 was praised by many reviewers stating the buildquality and the interesting Z Launcher as positive sides.

    • To skip MWC would be a big miss since Microsoft is already emptying space for Nokia fans to come back to roots. I believe HMD will unveil something at that Nokia event at the beginning of the November. Agree they shouldn’t rush back now, but MWC is definitely a good moment for them to bring Nokia back with style. The new SGS 8 could be there, maybe some other high class phones. Somehow I think Nokia already developed some prototype phones and transfered all to HMD. HMD is building up right now and they will just finish what Nokia Technologies started before. Maybe I’m wrong, we’ll see.

      • PNHD

        Of course MWC is big, but if they don’t have their distribution channels and carrier relationships in place then having a phone ready is no good. So iut would be better to just skip it until everything else is set. This of course gives them proper time to work on the phones. The new Withings products won’t be ready at MWC either so it’s again better to wait. Imagine a proper Nokia event with OZO and wearables launches that everyone knows it’s Nokia proper. Then at that event they show the new phones as well. It will remove doubt and silence naysayers who say that the new phones are just chinese devices re-branded with no imput from Nokia.

        Also the IFA timeframe is pretty good for devices

      • PNHD

        Of course MWC is big, but if they don’t have their distribution
        channels and carrier relationships in place then having a phone ready is
        no good. So iut would be better to just skip it until everything else
        is set. This of course gives them proper time to work on the phones. The
        new Withings products won’t be ready at MWC either so it’s again better
        to wait. Imagine a proper Nokia event with OZO and wearables launches
        that everyone knows it’s Nokia proper. Then at that event they show the
        new phones as well. It will remove doubt and silence naysayers who say
        that the new phones are just chinese devices re-branded with no imput
        from Nokia.

        Also the IFA timeframe is pretty good for devices
        And
        lastly i don’t think HMD is finishing what Nokia Tech started. I think
        they are starting from scratch. Question is when did they start? In
        september 2015 when HMD was incorporated? Beginning of this year when
        they announced the sale and buy-out from Microsoft? A little bit later?
        Cause if i remember past Nokia statements from symbian and wp days it
        usually takes between 12-18 months to make a phone, from the planning
        stages through design, engineering, prototyping, production testing.
        Only with this information it would be difficult for them to be ready in time for MWC

        • Agree in general with what you said, but they are aware that great momentum was created with downfall of Microsofts phone business and exploding Note 7 now, so to miss MWC or even sooner, it would be maybe a great opportunity lost.

          Why i believe that they already have a starting prototype is if you take feature phone we just saw getting certified in China, and that Nokia China official saying about having two phones in low start with one having graphene based sensor. It would be stupid to announce hmd if they didn’t believe that phones can be delivered in next 12 months or less.
          Maybe Haidamus left because Technology was spending money in preparung phones for HMD while we know where he was standing regarding that business.

          Now I’m in the field of guessing so won’t spread my thoughts more than this 😀

    • Rce