Nokia revives mobile phone, tablet business

The once undisputed leader in the mobile phone industry, Nokia, is making an epic comeback to the global smartphone and tablet market as it taps a Finish company to create Nokia-branded gadgets in the next 10 years.

Nokia Technologies said it will grant HMD global Oy (HMD) the exclusive license to produce and sell Nokia-branded smartphones and tablets in exchange for royalty payments covering both brand and intellectual property rights.

For its part, HMD will acquire the rights to use the Nokia brand on feature phones and related design rights from Microsoft. HMD said it will invest US$500 million (AU$656 million) over the next three years to support the global marketing of the new generation of Nokia smartphones and tablets.

"Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets,” said Ramzi Haidamus, president of Nokia Technologies in a statement.

For his part, HMD CEO-designate Arto Nummela said the new range of Nokia-branded mobile phones and tablets will be a set of devices that will resonate with consumers.

“Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand and our extensive experience in sales and marketing. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want,” Nummela pointed out.

Nokia offered no information yet on the release date of the new Nokia-branded gadgets. However, it disclosed that HMD's new smartphone and tablet portfolio will be based on Android, a mobile operating system developed by Google that is based on Linux kernel. Already, Android runs smartphones created by Samsung, LG, Sony, and HTC, among others.

Nokia's last smartphone offerings include the Lumia and Asha series, as well as the dual-sim Nokia X.