Is Nokia Making A Comeback? Everything One Should Know

The news of Nokia making a comeback has stirred the tech community. This speculation rose when folks spotted 17 new Nokia models on the IMEI website (International Mobile Equipment Identity). Seeing this, multiple questions can arise in your mind- Will Nokia resurrect again to gain its lost historical dominance? Is Nokia’s tech innovation capable enough to beat the dominating smartphone giants like Apple, Samsung, OnePlus, etc.?

Stick to this article and you’ll get all the answers.

(A) Backstory of NOKIA: Dominance to Decline

Two decades ago, a brand that dominated the mobile phone market was Nokia. All of us have witnessed the sturdiness of Nokia phones. Do you know that Nokia was the first one to support a hardware-level customization? Its old school device Nokia 3310 was a massive hit between 2000 and 2005. 126 million units of this old-school device were sold globally.

But then, something changed. People started wanting phones that could do more than just call and text. They wanted smartphones with touchscreens and fancy apps. Apple’s iPhone came along and changed everything. Nokia didn’t keep up with the trend. They stuck with their old-style phones and software.

Soon, Nokia’s phones weren’t as popular anymore. They tried to catch up by teaming up with Microsoft, but it was too late. Other companies like Samsung and Apple were already ruling the smartphone world.

Let me sum up the reasons behind Nokia’s fall from the top of the phone world in the following points-

• Sticking to old style & Resistance to Smartphones: Firstly, Nokia resisted the rise of smartphones. While others jumped onto the smartphone train, Nokia stuck with its old-style phones. People wanted more than just calls and texts; they wanted touchscreens and apps. Nokia missed the boat on this big trend.
• Unstrategic Deal with Microsoft: Then, there was the deal with Microsoft. Nokia decided to team up with Microsoft and use its Windows Phone software. But, it wasn’t as popular as Android or iOS. This partnership limited Nokia’s options and hurt its market share.
• Poor marketing strategies: Nokia’s marketing didn’t help either. Their ads didn’t hit home with consumers, unlike the slick campaigns of Apple and Samsung.
• Slow Witted: Plus, Nokia moved too slow. They were like the big ship trying to turn around while others sped ahead. Their big company structure made it hard to make quick decisions.
• Unable to foresee the competition: Nokia also thought too highly of itself. They were so successful in the past that they didn’t see the new guys coming. They underestimated the competition.
• Lack of Innovation: Lastly, Nokia’s phones were good but not exciting. They didn’t bring anything new to the table in terms of software or user experience. People wanted innovation, and Nokia didn’t deliver.

In the end, Nokia had to sell its phone business to Microsoft. It was a sad day for Nokia fans. But Nokia’s still around, doing other stuff like making internet networks. So, even though Nokia’s phone days are over, its legacy lives on! Really? Yes, go through the following section and you’ll find out!

Note: Similar is the story of Blackberry! We have covered the story “Why did Blackberry shut down? The rise & fall of Black Titan.” Go through it for detailed information.

(B) Recent Developments for Nokia making a comeback

Guess what? HMD Global, the company behind Nokia smartphones, grabbed the Nokia brand from Microsoft in 2014. But now, they’re shaking things up by retiring the ‘Nokia’ name and introducing new smartphones under their ‘HMD’ brand.

(B.1) 17 New Nokia Models Spark Excitement

In a twist that has tech fans buzzing, HMD Global set tongues wagging with reports of 17 mysterious Nokia models spotted on the IMEI website. These models, from TA-1603 to TA-1628, have everyone guessing their specs and features. Experts believe that Nokia must have upgraded its RAM and storage system in its new models. 

(B.2) HMD Global’s 10-Year Deal and Future Prospects

Here’s the scoop- Nokia signed a 10-year deal with HMD Global back in 2016, lasting until 2026. That means we could keep seeing fresh Nokia phones hitting the shelves until then.

(B.3) Leaked HMD Models Add to the Mystery

But wait, there’s more! Alongside the Nokia lineup, the IMEI website spilled the beans on nine new HMD-branded handsets. Are they separate devices or just variations of the same model? Only time will tell. And get this- leaks hint at an eye-catching HMD smartphone in vibrant blue, boasting a whopping 108MP primary camera with optical image stabilization.

As we eagerly await official news from HMD Global, the tech world is alive with anticipation for the arrival of these new Nokia and HMD smartphones.

(C) Current Business Landscape of Nokia

Nokia, a well-known technology giant, is navigating its business landscape with a strategic focus, especially through its Strategy 2023 unveiled in 2021. This strategy aims at achieving sustainable and profitable growth, with a vision to become a B2B technology innovation leader.

(C.1) Strategy 2023 Overview

Nokia recognizes the rapid pace of digitalization worldwide and aims to capitalize on it. As businesses, webscalers, and governments embrace digital transformation, the need for essential networking technology becomes paramount. Nokia’s Technology Vision 2030 emphasizes the importance of networks as we transition to 5G-Advanced and eventually 6G, with an eye on technologies like augmented reality, virtual reality, and digital twins.

(C.2) Key Elements of Nokia’s Strategy

Nokia focuses on several key elements to achieve its strategic goals-

• Networking Expertise:  Leveraging its deep understanding of networking, Nokia positions itself as a valuable partner for industries seeking digital transformation.
• Technology Leadership: Nokia prioritizes delivering top-notch technology solutions, ensuring high-quality offerings for its customers.
• Pioneering Innovation: Innovation is ingrained in Nokia’s DNA, evident from its research at Nokia Bell Labs and ecosystem-building efforts.
• Collaborative Advantage: Nokia’s collaborative approach helps build trusted relationships with customers and partners.

(C.3) Market Position

In recent years, Nokia has witnessed a noteworthy comeback in the mobile phone market, gradually increasing its market share to around 8% in 2020. This resurgence is attributed to Nokia’s renewed focus on innovation, product diversification, and strategic partnerships.

(C.4) Outlook and Measures

Looking ahead, Nokia anticipates a potential demand recovery in the second half of 2024, in line with broader signs of recovery in the network infrastructure sector. The company also plans to withdraw from its Chinese joint venture with Huawei and has inked a patent deal with Chinese smartphone maker Oppo.

(C.5) Stock Performance

NOK stock has surged 113% since the 2020 crash, but its highest close was $6.55 in January 2021. While this growth is impressive, Nokia still faces challenges in reclaiming its former glory. Investors need to weigh whether Nokia’s recent performance qualifies it as a growth stock worthy of consideration for their portfolios.

(C.6) Major Revenue Sources

Nokia’s primary revenue sources have shifted away from smartphones. Instead, they focus on-

• Networking and Telecom Infrastructure
• Network Security Solutions
• Wi-Fi Routers
• Smart Lighting
• Smart TVs

Interestingly, Nokia’s feature phone business (also run by HMD Global) is doing well and holds the third position globally in sales. Feature phones remain popular, especially in developing markets.

As the digital landscape continues to evolve, Nokia aims to stay at the forefront of technological innovation and maintain its leadership position in the industry.

(D) Upcoming Challenges for Nokia’s Comeback

Here are some of the hurdles that Nokia will face while making its comeback in the phone industry-

• Intense Competition: Nokia will face stiff competition from established players like Apple, Samsung, and emerging Chinese brands. These competitors have strong brand recognition, loyal customer bases, and innovative products, posing a significant challenge for Nokia to regain market share.
• Rapid Technological Advancements: The phone industry evolves rapidly, with new technologies emerging frequently. Nokia must keep pace with advancements in areas like 5G connectivity, foldable displays, and camera technology to remain competitive. Failure to innovate could result in Nokia falling behind its rivals.
• Consumer Preferences: Understanding and adapting to shifting consumer preferences is crucial for Nokia’s success. Consumers today demand sleek designs, advanced features, and seamless user experiences. Nokia must align its product offerings with these preferences to attract and retain customers.
• Supply Chain Disruptions: Global supply chain disruptions, like those caused by the COVID-19 pandemic, can impact Nokia’s ability to manufacture and deliver products efficiently. Managing supply chain risks and ensuring a steady supply of components will be essential to avoid delays and meet customer demand.

Future Prospects: Is Nokia making a Comeback?

Nokia’s comeback journey holds promise, but challenges lie ahead. With a renewed focus on innovation and strategic partnerships, Nokia aims to regain its foothold in the phone industry. However, fierce competition, rapid technological advancements, and evolving consumer preferences pose hurdles. 

Success hinges on Nokia’s ability to adapt, innovate, and deliver products that resonate with modern consumers. As the company navigates these challenges, the future remains uncertain but hopeful!

Stay tuned for updates on Nokia’s comeback saga, and don’t forget to share your thoughts in the comments section below. 

Thanks for reading!