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.
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.
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.
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.