Nokia is planning a comeback, as their current relationship with Microsoft is about to end later this year.
Reuters reported that Nokia is planning to design and licence a new smartphone that will be released next year, after the company ends its September 2013 deal with tech-giant Microsoft worth $7.3 billion.
Since Nokia had experienced a continuous decline in sales these past years due to its inability to cope with rapid advancements in the smartphone technology, the Finnish company ended up selling its mobile business to Microsoft. Since that said agreement between two companies, Microsoft has been selling smartphones under its own brand.
In an interview with Germany’s Manager Magazin, Nokia CEO Rajeev Suri spoke about their future plans come 2016.
“We will look for suitable partners. Microsoft makes mobile phones. We would simply design them and then make the brand name available to license,” Suri said.
Nokia previously denied plans of manufacturing new smartphones next year, suggesting a misinterpretation in its branding and licensing strategies.
In their statement on their website, they said: “Nokia notes recent news reports claiming the company communicated an intention to manufacture consumer handsets out of a R&D facility in China. These reports are false, and include comments incorrectly attributed to a Nokia Networks executive. Nokia reiterates it currently has no plans to manufacture or sell consumer handsets.”
Just last April, Nokia acquired French Alcatel-Lucent, through a 15.6 billion-euro deal ($17.8 billion), with the intention to boost its mainstay network equipment sector. The two companies will remain collectively known as Nokia, with Risto Siilasmaa as chairman and Suri as chief executive.
Additionally, Nokia is also working on its high-definition mapping business called HERE, which is reported to earn the interest of various German carmakers such as BMW, Mercedes, and Audi. Silicon Valley and some other China-based Internet and technology companies.