Nokia re-kills smartphone battlefield but the lake has changed

After two years of retirement, Nokia is about to re-kill the smartphone battlefield.

August 16, Nokia Communications China and Shanghai Bell Joint management team president Wang Jianya told the media that Nokia's mobile phones and tablets will return to the market in the fourth quarter of this year.

Nokia's failure in its smart-machine strategy has allowed it to collapse quickly in a cuikulaxiu way. But will the new Nokia, branded by the industry's giant Hon Hai, be able to win a place in a fiercely competitive smartphone?

　Foundry Branding

Nokia will be the focus of attention in the fourth quarter of this year's smart-machine launch.

The configuration of the new Nokia smartphone, which comes out of the Internet, shows that the two Android phones use a 5.2-inch and 5.5-inch AMOLED screen, with a Dragon 820 processor priced at more than 3000 yuan. Mainland China will become the starting market.

Wang Jianya told the media that Nokia's mobile phone business had been sold to Microsoft after it had agreed not to launch Nokia-branded handsets and tablets for two years. After the end of this year, Nokia will come back through a brand-licensing approach.

In fact, Nokia, after stripping its mobile phone business, has transformed into a telecoms device provider. The newly-returned Nokia handset is branded by the foundry giant Hon Hai.

The night of May 18 this year, Hon Hai's Fu Zhikang (2038. HK) issued a notice announcing that it would join with the Finnish HMD Global Oy Company ("HMD") for $350 million, from Microsoft to get the Nokia feature phone design, manufacture, sales and related accessories business.

Fu Zhikang also announced that its indirect wholly-owned subsidiary, TNS Limited (hereinafter "TNS"), signed a tripartite cooperation agreement with HMD and Nokia. Fu Zhikang and TNS will be responsible for the future technology, manufacturing, supply chain and research and development of Nokia mobile phones and tablet products, HMD and TNS will be responsible for the distribution channels of Nokia mobile phones and establish a global sales network.

But despite its involvement in many parts of the industry chain, Hon Hai has not been granted Nokia's brand and patent.

Fu Zhikang released an announcement that Nokia granted the global exclusive patent right to HMD, allowing the latter to produce Nokia branded handsets and tablets within 10 years.

According to the "Huaxia Times" reporter understands, the new HMD company and Nokia relations, its executives have been in the Nokia mobile service. There is also news that Hon Hai is behind the HMD.

It is worth noting that Nokia's function machine will return sooner than the smart machine.

The printing media said August 9, the Nokia mobile phone in two years after a lapse, will return to Foxconn in India's factory production. HMD also revealed to the media that it will first bring Nokia back to the mobile phone field in the form of a functional machine.

　The odds of a comeback

Nokia's retirement stems from its agreement with Microsoft.

Nokia's mobile phone business was sold to Microsoft in 2013 for a $7.2 billion price. Microsoft gained access to the smartphone brand as of October 2016, with the feature-machine aspect of Nokia mobile phones as of October 2023.

The failure of the smart-machine strategy is thought to be an important reason for Nokia to sell its mobile phone business. This is firmly affixed to the "strong fall" label of the function Machine overlord, in the opponents have chosen to Android, adhere to their own Symbian system. When deciding to enter the smart machine, it also chose to apply the slow-updating Windows Phone system bundle, market share dropped again.

Jindi, a research manager at IDC's Terminal Systems Research department, said that Nokia's failure also stems from its lack of corresponding bright spots in product strategy, channel strategy and product appearance, according to the Chinese Times reporter.

New Nokia behind the operation of the operator HMD has been in the marketing, channels and other aspects of layout.

August 16, Reuters News said Hmd company announced that it has hired "Angry Birds" developer Rovio's former CEO Peckar Lantara (Pekka Rantala) as the chief marketing officer. HMD has also announced plans to invest more than $500 million over the next 3 years to support the global sales of Nokia handsets.

IHS Technology China Research director Mr Wang told the Chinese Times reporter that Nokia's new mobile phone is more reasonable in terms of resources. Android system has an ecological chain, supply chain research and development with the help of Foxconn, brand sales force in Nokia, positioning 3000 yuan or so in the middle-end or can support live.

Jindi also to the "Huaxia Times" reporter said, Nokia after the return of the product strategy is to enter the high-end. At present, mobile phone market high-end competition saturation, the middle end has a certain amount of stock into. The price segment chosen by Nokia is less competitive.

But in the face of Apple, Samsung and home-made handsets, Nokia is back in a much tougher competition than ever before.

According to IDC, the research agency, two of the world's mobile-phone market share data, 22.4% of Samsung and 11.8% of Apple are still ranked in the top two. The Chinese handset maker, Vivo and Oppo, followed by nearly 22% of the market share.

The focus on China's smart-machine market, domestic mobile phone competition is particularly fierce. IDC data showed that Huawei, Oppo and VIVO3 companies accounted for 47% of the market share in the domestic handset market in the second quarter of 2016. The fifth-ranked Apple accounts for only 7.8% of the market share.

It seems that the re-entry of Nokia wants to stand firm in the fierce competition of smartphones, and it is clearly not enough to rely on feelings alone.

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Nokia re-kills smartphone battlefield but the lake has changed