Nokia is about to return to the smartphone and tablet market. The Finnish company has officially confirmed the step. Speculation Nokia would do so was ripe directly after it sold itsmobile business to Microsoft back in 2013. Now, the Nokia brand will be resuscitated for the market. Nokia, however, won't directly develop and manufacture smartphones and tablets itself. Instead, Nokia has licensed its brand name for ten years to a new company it has founded called HMD global.
Nokia has also confirmed that new smartphones will use Android as an operating system. HMD plans to invest 500 million US dollars into churning out new tablets, smartphones and features phones in the next three years. Arto Nummela will be CEO of HMD, a former senior manager of Nokia and the current head of Microsoft's mobile devices business for Greater Asia, Middle East and Africa. Florian Seiche, currently a senior vice president for at Microsoft Mobile, will be president of the company. Just like Nummela, he was also previously employed by Nokia, as well as HTC.
Nokia will receive royalties for licensing its IP, patents and brands to HMD global. The phones will be produced by FIH Mobile, a subsidiary of contract manufacturer Foxconn. Microsoft has sold the old Nokia feature phone business to Foxconn, including the production plants in Vietnam, for 350 million US dollars. Foxconn will make money from manufacturing phones for HMD under the Nokia brand, in turn creating revenue for Nokia. First products are yet to be announced.