A mockup of the brand new Nokia brand is seen on this handout picture launched Feb. 26, 2023.
Nokia | Through Reuters
Nokia introduced plans on Sunday to alter its model identification for the primary time in practically 60 years, full with a brand new brand, because the telecom gear maker focuses on aggressive development.
The brand new brand contains 5 completely different shapes forming the phrase NOKIA. The enduring blue coloration of the outdated brand has been dropped for a spread of colours relying on the use.
“There was the affiliation to smartphones and these days we’re a enterprise know-how firm,” Chief Government Pekka Lundmark informed Reuters in an interview.
He was talking forward of a enterprise replace by the corporate on the eve of the annual Cell World Congress (MWC) which opens in Barcelona on Monday and runs till March 2.
After taking excessive job on the struggling Finnish firm in 2020, Lundmark set out a method with three phases: reset, speed up and scale. With the reset stage now full, Lundmark stated the second stage is starting.
Whereas Nokia nonetheless goals to develop its service supplier enterprise, the place it sells gear to telecom firms, its principal focus is now to promote gear to different companies.
“We had superb 21% development final yr in enterprise, which is at the moment about 8% of our gross sales, (or) 2 billion euros ($2.11 billion) roughly,” Lundmark stated. “We need to take that to double digits as shortly as doable.”
Main know-how corporations have been partnering with telecom gear makers similar to Nokia to promote non-public 5G networks and gears for automated factories to prospects, principally within the manufacturing sector.
Nokia plans to overview the expansion path of its completely different companies and think about options, together with divestment.
“The sign may be very clear. We solely need to be in companies the place we are able to see world management,” Lundmark stated.
Nokia’s transfer towards manufacturing facility automation and information facilities may also see them locking horns with huge tech firms, similar to Microsoft and Amazon.
“There might be a number of various kinds of circumstances, generally they are going to be our companions … generally they are often our prospects… and I’m certain that there may also be conditions the place they are going to be rivals.”
The market to promote telecom gear is beneath strain with macro atmosphere denting demand from high-margin markets similar to North America, being changed by development in low-margin India, pushing rival Ericsson to put off 8,500 workers.
“India is our quickest rising market that has decrease margins — this can be a structural change,” Lundmark stated, including that Nokia expects North America to be stronger within the second half of the yr.