Despite Nokia having refuted such claims earlier this year, their CEO Rajeev Suri has finally confirmed that Nokia will be designing smartphones soon, but they have not decided who they will partner up with.
According to the CEO, the company will now turn towards a design licensing model, where they will just design a smartphone and then let other manufacturers produce and distribute those designs.
The company did something similar with the N1 Tablet last year, which was basically designed by Nokia but manufactured by Foxconn.
However, there is a slight problem with this new direction Nokia wants to take. Since Microsoft acquired the once-leading Finnish giant, the company is not allowed to sell phones under its own name till the end of this year and cannot license out its brand to other manufacturers till 2016’s third quarter.
Nevertheless, it’s safe to assume that Nokia will be going ahead with Android once the restrictions are lifted, much like the N1 Tablet.
Back in the day, the Finnish company lost its dominant market share in the face of a changing smartphone landscape after the arrival of iOS and Android. Even to this date however, Nokia’s smartphone designs are not doubted and tons of people would give anything to get a fully functional, Android-running Nokia Lumia phone.
Despite the restrictions, the company has been active in the telecommunication sector with the recent purchase of Alcatel-Lucent, aimed at increasing its network equipment business.
Once the restrictions lapse in 2016, Nokia may well start working towards its former position at the top. However, given the new challenges it faces in the smartphone market today, the move towards licensing may be wise. What do you think about Nokia’s future? Would you be in line for a flagship Nokia Android phone if it came out anytime soon?