Masterstroke by Nokia, invites large-scale mobile manufacturers to produce phones, deal with HMD to end by…, sales likely to…

New Delhi: Finland technology giant Nokia is reportedly exploring partnerships with large-scale mobile manufacturers to produce its phones. In a community post on a social media platform, the company’s executive shared the information. It is important to note that the company is bound by a global licensing agreement with HMD Global, which also owns its phone division. To recall, last year, HMD Global began marketing Nokia devices under its own branding, which opened up potential avenues for Nokia to sell smartphones under its own name once again.

HMD Global and Nokia’s Licensing Deal

Nokia’s community manager, in a Reddit post, invited large-scale mobile manufacturers to reach out to them through the company’s website for collaboration with the brand. Nokia also plans to explore ways to sell phones with its own branding, especially since its 10-year licensing agreement with HMD Global is set to expire in 2026. However, there is also a possibility that the agreement may be renewed, as HMD Global owns Nokia’s mobile division, which it acquired from Microsoft in 2016.

Founded by the former Nokia executive in May 2016, HMD Global set out with the mission to restore the Nokia brand to its former glory. With an aim to achieve this, the company signed a 10-year licensing agreement with Nokia to manufacture and market its phones—devices that were previously sold under Microsoft’s Lumia branding.

Here are some of the key details:

  • In February 2024, HMD Global decided to launch Android smartphones under its own branding
  • This step effectively limited the Nokia name to a few feature phones.
  • Nokia is now pushed to explore external partnerships, as the company will be free to license its brand to another manufacturer in 2026—one that can produce, market, and distribute smartphones under the Nokia name.
  • Neither Nokia nor HMD Global has officially revealed what will happen once the current agreement ends next year.
  • According to Nokia’s 2023 annual report, while the company experienced a decline in sales, its patent licensing agreements provided crucial financial support.

Therefore, licensing of patents and technologies remains essential for its financial stability. Similarly, its trademark and manufacturing agreements are key to keeping the Nokia brand relevant.

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