A Nokia Lumia 1020 Smartphone Is Displayed During The 2014 Computex Exhibition
IN PHOTO: A Nokia Lumia 1020 smartphone is displayed during the 2014 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 3, 2014. Computex, the world's second largest computer show, runs from June 3 to 7. [Representational Image] REUTERS/Pichi Chuang

Reports on Nokia planning to make its comeback to the mobile business are already rife now. The latest development on this matter came on July 13, when Nokia said that it can start designing and licensing smartphones in 2016 with a partner that can take care of the other aspects of the business.

Nokia’s spokesman Robert Morlino explained through the company’s blog post that Nokia plans to get back to mobile devices business but it will snub its past strategy of designing and building its own products. “The right path back to mobile phones for Nokia is through a brand-licensing model. That means identifying a partner that can be responsible for all of the manufacturing, sales, marketing and customer support for a product,” said Robert Morlino.

Nokia’s Decision To Reenter Mobile Business, Does It Make Sense?

Reentering the smartphone segment would be difficult for Nokia considering the smartphone industry has become highly competitive. While Apple is ruling the industry, other competitors are working out on reasonable pricing and sales strategy to sustain themselves in the market.

According to a CNET report, Nokia, which was once a dominant handset manufacturer in the world, failed to conform with the growing craze for touch screen smartphones. Subsequently, it lagged behind Apple and Samsung. Though Nokia tried rebuilding its business, its customers switched to other products.

But a Forbes report mentions that the comeback of Nokia to the smartphone market makes some sense considering Microsoft has shifted its focus from manufacturing handsets to developing an ecosystem. Smartphones is recording strong growth globally and Nokia is perhaps reconsidering its opportunities in the smartphone market after it witnessed strong response from its customers for its N1 tablet.

Nokia said it in its blog post that it would not get back to the mobile business before Q4 2016. It means Nokia has some good time in hand to look for a suitable partner. The Finnish company had sold its smartphone unit to Microsoft in 2013. According to the deal, Nokia was restricted to license its brand name to any smartphone maker for 30 months after September 2013, reports Forbes.

(For feedback/comments, mail the writer at pragyan.ibtimes@gmail.com)

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