Nokia branded smartphone models 5, 6 and 3 are on display.
| Photo Credit: EMMI KORHONEN

HMD Global, a Finnish mobile phone manufacturer, and official brand licensee for Nokia on Friday said it would follow a multi-brand strategy ie: mobile phones and devices under the brand names of both HMD and Nokia will co-exist in the global markets.

Refuting global reports about the end of brand Nokia, an HMD Global communique said, “You will continue to see new Nokia phones. True to our values, HMD will continue to design more sustainable and affordable phones- our repairability, sustainability and digital detox products are landing incredibly well amongst consumer and business audiences alike and we are excited to build on that momentum with the new HMD brand.’‘

Ravi Kunwar, VP, India, APAC, HMD Global, said, “Today is a big day for HMD as we move from being a brand licensee to a brand owner, a big step in our journey! This means you will get to see unique HMD originals, the Nokia phones that you’ve always loved.’‘

The statement released by HMD Global said it would move forward with a new multi-brand strategy where it would produce devices under a new HMD Originals brand name alongside Nokia.

However, the company also said it was updating its channels from Nokia Mobile to HMD adding, this change was more than just a new name. “We are introducing a fresh new multi-brand strategy.This means you’ll see a range of HMD Originals alongside Nokia phones and exciting products from new partnerships this year,’‘ he said.

Washington, United States:

Finnish telecom giant Nokia said Tuesday it is suing Amazon in five global jurisdictions, including the United States and India, over patent infringements on video-related technologies. 

Nokia said it is also suing HP, formerly known as Hewlett-Packard, in a US court, also for using Nokia video technology without its permission.

“We’ve been in discussions with each of Amazon and HP for a number of years,” said Arvin Patel, Nokia’s chief licensing officer, in a blog post.

“But sometimes litigation is the only way to respond to companies who choose not to play by the rules followed and respected by others,” he added.

Suits against Amazon were also lodged in Germany, Britain and at the EU’s patent court.

The company said the cases involved Amazon’s Prime Video service as well devices that were in violation of Nokia’s patents on “video compression, content delivery, content recommendation and aspects related to hardware,” the blog post said. 

Nokia said the streaming market is estimated to reach $300 billion by 2027, but decried what it saw as a mismatch between those who invested in developing the technology “and those who benefit the most.”

The company said it had successfully reached agreements on such technology with Apple, Samsung and other device makers.

“Our preference is to reach amicable agreements with the companies who rely upon our technology, and our door remains open for constructive, good-faith negotiations,” Nokia’s Patel said.

Nokia earlier this month said it would cut up to 14,000 job as profits fell on weakening demand for its 5G equipment in North America.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

Nokia has announced to reduce its workforce by up to 14,000 jobs due to a 19% decline in third-quarter sales. The programme is projected to result in an organisation with 72,000 to 77,000 employees, as opposed to the current workforce of 86,000 at Nokia, the news agency Reuters reported.

This drop in numbers is primarily attributed to sluggish sales of 5G equipment in markets like North America.

“Mobile Networks net sales declined 19% as we saw some moderation in the pace of 5G deployment in India which meant the growth there was no longer enough to offset the slowdown in North America,” CEO Pekka Lundmark said in a statement.

Nokia’s new cost-saving plan aims to achieve cost reductions of between 800 million euros and 1.2 billion euros by 2026. The objective is to align with its long-term plan of achieving a comparable operating margin of at least 14% by 2026.

“While our third-quarter net sales were impacted by the ongoing uncertainty, we expect to see a more normal seasonal improvement in our network businesses in the fourth quarter,” Mr Lundmark said.

He emphasised the significance of resetting the cost base as a crucial measure to adapt to market uncertainties and ensure long-term profitability and competitiveness.

Nokia has expressed its commitment to swiftly execute the programme, anticipating at least 400 million euros in savings for the year 2024, followed by an additional 300 million euros in 2025. 

Nokia is set to transition into a more streamlined corporate centre that will offer strategic oversight and guidance while safeguarding investments in research and development.

This will also grant greater autonomy to its business units. The company emphasized that while the program is expected to yield savings, the extent of those savings will be contingent on the level of cost inflation.