Nokia Dishes More On Possible Phone Plans
Feb 21, 2016, 6:59 PM by Eric M. Zeman
Nokia CEO Rajeev Suri today reiterated that the company would like to return to the phone business, but said it is in no rush. Speaking at the Mobile World Congress trade show, Suri noted that Nokia will not manufacture its own handsets, but will instead license its brand to an outside manufacturer. The company wants to play a role in designing the phones to ensure the Nokia brand is well represented, but so far is still just looking. "For us the business model is one of no traditional manufacturing, no channel or nothing we are just basically licensing our brand," said Suri. "The partner will have to pay us an IP license for it and royalty on the brand use, and we want to be in a position to design the devices in question with appropriate control measures should the partner not work to our standard. This takes time. We need to find the right partner." Suri had originally said such a deal might be struck late this year, but stepped back from that timeline, suggesting Nokia may not re-enter the phone market until 2017 or beyond. Nokia sold its handset business to Microsoft, which divested the manufacturing facilities. Nokia no longer has the capacity to manufacture phones. Its primary focus remains its telecommunications and networking business.
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