According to Nokia’s CEO Pekka Lundmark, the company plans to introduce a new brand that emphasizes networks and industrial digitalization, which is distinct from their past focus on mobile phones.
Nokia Oyj, a Finnish 5G equipment manufacturer, has revamped its logo to disassociate itself from mobile phones, a business it exited nearly ten years ago.
On Sunday, Nokia unveiled a brand redesign and a new set of strategic pillars aimed at facilitating quicker growth, as 5G technology becomes more widespread.
Nokia CEO Pekka Lundmark explained in an interview prior to the Mobile World Congress in Barcelona on Sunday that although Nokia is still perceived by many as a prosperous mobile phone brand, it is not representative of the company’s current focus. Instead, Nokia intends to establish a new brand that concentrates on networks and industrial digitalization, a departure from their previous emphasis on traditional mobile phones.
HMD Global Oy has been selling phones under the Nokia brand, following Microsoft Corp.’s purchase of the business in 2014, which led to the discontinuation of the brand.
What Nokia CEO said?
According to CEO Pekka Lundmark, Nokia plans to expand its market share in the network equipment segment that serves wireless service providers, with a focus on maintaining margins. Nokia has the necessary resources to capture market share, aided by restrictions on Chinese rival Huawei Technologies Co. due to being blocked by several European governments from selling 5G network components.
Additionally, Nokia aims to increase growth in its enterprise business by selling private 5G networks to companies, targeting a double-digit share of Nokia’s revenue through organic growth and smaller acquisitions. The enterprise business represented 8% of Nokia’s revenue last year.
Nokia has no plans to follow in the footsteps of its competitor, Ericsson AB, which acquired Vonage Holdings Corp. for $6.2 billion in a bid to expand its presence in the enterprise market.
Nokia’s recent BBB- investment-grade rating from S&P Global Ratings marks the end of over a decade of being considered a junk-level investment. However, CEO Pekka Lundmark acknowledges the need to improve the company’s operating margins.