The Finnish technology company Nokia will officially come back to the smartphone market after the terms related to the contract with Microsoft expires. Back to Android, focusing on high-end line or dominate the secondary market, there are too many questions raised about the Nokia strategy when they return to the market.

Current Nokia Strategy

Over 2 years ago, Microsoft acquired the hardware and service array of Nokia. Since then, the company changed the business strategy, they stopped using the Nokia brand for new products and the development. On 5 May 2016, Microsoft signed an agreement with HMD Global, a Finnish private enterprise. Now HMD Global has the exclusive license to manufacture the Nokia phones and tablets in the next 10 years. Microsoft will receive a total of $350 million from these two companies – Nokia and HMD.

According to many leaked information and official announcement, Nokia seems to follow the strategy of co-operating with third party company to develop and produce their up-coming phones, instead of making phones themselves. HMD Global will launch at least 2 Nokia Android smartphones in quarter 2/2017. We can expect those will be Nokia P1 and Nokia C1. Nokia’s new smartphones are expected to have good quality with competitive price. 

The Nokia’s upcoming handset will have a bunch of innovation. The new smartphone is capable of escaping the shackle Windows Phone from Microsoft and runs on the Android platform, the OS in 4 out of 5 smartphones worldwide. And of course, they will give birth to a unique brand in the manufacturing mobile phone industry under the development of a third party company. This is also a premise for other co-operations between Nokia and other third party enterprises.

The market response will decide future Nokia Strategy

After all, Nokia will soon come back to the market in 2017 as in their official announcement. As for 2 new phones, Nokia C1 and Nokia P1, the customers’ response will decide the future Nokia strategy. If the sale and profits are optimistic, Nokia might continue to collaborate with third party company to develop and produce more phones. So will you buy a new Nokia phone? Stay tuned to keep up to date with Nokia next moves!