Nokia to get into Cell Phone Licensing post-Microsoft agreement period

by Chetan Bhawani 18

Nokia N1

It was a deal, done and decided between Nokia and Microsoft, where Microsoft acquired major part of the company Nokia, and the main point to note is that until 2016, under the terms of the sale of its handset business to Microsoft, Nokia is prohibited from making smartphones. But the company isn’t ending it here, as they announce the Nokia N1 tablet.

Update, 19th June 2015: Nokia will resume designing and licensing its handsets once again after the agreement period ends in 2016. In an interview with Germany’s Manager Magazin, Rajeev Suri said, “We will look for suitable partners,” “Microsoft makes mobile phones. We would simply design them and then make the brand name available to license.”

[quote align=’right’] They said Nokia is dead. I say, they couldn’t be more wrong. – Sebastian Nyström [/quote]That is the reason why Microsoft launched the Microsoft Lumia 535 smartphone, running Windows Phone OS. But the Finnish major says Nokia isn’t dead, and the Nokia N1 tablet isn’t the only product they will have in the portfolio, as more devices will be launched in the near future.

“They said Nokia is dead,” Nokia’s head of devices Sebastian Nyström, said as he announced the Nokia N1 today, at the Slush event in Finland. “I say, they couldn’t be more wrong.”

Nokia did show it has its eye on products other than smartphones (which they cannot make until Jan 2016), but Ramzi Haidamus, Nokia’s technology chief also said that “we will be looking at going into the cell phone licensing business post-Microsoft rights”.

The Nokia N1 tablet isn’t a product made by Nokia, but is made by Foxconn, the Chinese technology group, which is the one building iPhone for Apple. The standards for this tablet were given by Nokia, and the latter is also going to receive a license fee for the use of its brand.

Haidamus isn’t shy in comparing this with the iPad Mini (and in fact the Nokia N1 looks familiar to the iPad Mini), as he says the N1 tablet “would be as good as Apple’s iPad mini but cost less.”

“It’s the first of many coming – more SKUs, more sizes, more features,” he said, also mentioning about how they look to not limit themselves to tablet devices. “We will go beyond tablets for sure.”

The iconic name “Nokia” could also lose its brand value it had carried since decades, by coming into agreements with Asian manufacturers, who have been famous for making cheap products with not the best quality. But Mr Haidamus said that the partnerships made are made with control on design quality. “We are not just taking our brand and throwing it over the fence to see which products it sticks to. We are using our own industrial design team – the ones that have designed extremely successful Nokia products in the past – and delivering the design to Foxconn.”

Nystrom said, Nokia is about “great tech, great engineering, great design, and products that make things better for everyone,” claimed Systrom, who finished by saying, “People need better products, and we design those that make a difference.”

Could this be a sign that Nokia’s acquisition by Microsoft is more of an internal deal, where consumers are still going to be benefited and Nokia isn’t losing the tag already? Let’s hope it stays. The Nokia N1 looks promising for now, with the price of $249 and some excellent specs to power it, and the design does look like something made an approved by an experienced brand, rather than one of those Chinese manufacturers.

Chetan Bhawani

Chetan Bhawani is a dentist, a tech blogger and a passionate writer in the field of technology. He keeps himself connected to the web for the entire day, of course except when he's dozed off! Add +Chetan Bhawani on Google Plus for more!

  • Shanky Yadav

    RIP TO APPLE this is goona have all but really this is made be chinese or its a strategy of nokia to be stay still.. AS i am a big fan it i cant even think of that its a chinese product please anyone say me thats its not a chinese product

    • Android

      THIS IS NOT A CHINESE PRODUCT ITS STANDARDS ARE HIGH!!!

      • Shanky Yadav

        Hope so

  • so nokia is prohibited to produce smartphones but can still license and produce tablets. Good clause deal, as Nokia could still have an impact in the market. And if it is similar yet cheaper than the ipad mini, it definitely a good buy. But people will choose brand over affordability; its been proved over and over again. Nokia isnt a strong brand while apple is probably the biggest out there. Apple might be in for a hit or two, but they’re always prepared.

    • Shashank Chourey

      nokia sold only its mobile and services division to microsoft. it has network and technology division still alive (as far as I know). the N1 is made through independent division of nokia by oem foxconn.. nokia gave its name to device and design to foxconn in return foxconn has to pay to nokia.

  • Android

    All the other companies beaware!!!This is way for Nokia to go and i think this is an internal deal between Nokia and Microsoft. The NOkia N1 is an example of it and looking at the tablet at a glance it looks like Nokia has enough expirirnce to create amzing smartphone and more tablets like the N1. Now we are going to see the true colors of Nokia!!

  • Jugal Mudoi

    As usual it’s not so easy to understand the technicalities for everyone and also whatever deal was done, simply people get to know from this conversation of Nokia chief that Nokia isn’t dead and there’s still much more to explore in the box of Nokia and will have in future as well. Great information… it clears my all doubts

    • Android

      I sometimes think the reason they wanted to make a tablet in the form of an Ipad mini is to show Apple they are coming and show Samsung they will be the next Apple

      • Shashank Chourey

        Exactly what I think XD XD

    • Joshua Akinsola

      nokia is really ready to pick a fight with apple they arent dead and if they are going to go out they will go out swinging! cant wait to see how this plays out and if Nokia can make an honest attempt!

  • Suraj Racharla

    Nokia has always been mostly making phones for low budjet people and now i can see them hrow amf offer a really good phones for a higher price. Nokia is starting to go away from the low budjet market.

  • Joshua Akinsola

    im one of the critcs now left thinking if nikia will actually make a phone again. I dont think their is any trick to it or code. i think its the straightforward death of nokia under the hands of microsoft. Its whole line has been wiped out by microsoft and no nokias can come from it agaiN. nokias extinct from microsoft genoicide

  • Suraj Racharla

    Nokia has taken a step away from Microsoft and have finally started to make android phones. Nokia could have performed much better if they had made Android phones instead but they were stuck with Microsoft. Now since Nokia is able to make Android tablets it is clear they will be making great ones and affordable ones regarding the tablet they released called the N1. Really excited to see when they release beastly phones(if they do) and i think Microsoft has to realize that Windows dont really go good with phones and tablets and the only reason people buy it is because it is budget friendly. Android is the future!!

  • Android

    Lol i think i finally figured out why they did an ipad mini design. They want to show Apple they are coming for them and they will take them over(RIP Apple Tablets). And they also want to show Samsung that they will be the NEXT APPLE!!

  • Joshua Akinsola

    If nokia is poised to take over apple in tablet sales, they might hav a tough time because as of right now apple has dominance. No matter what is thrown their way apple sems to stay standing because of it large user appeal. Im rooting for nokia in this one and this is a nice time to take a bite out of apple, it will be tough but maybe then can prevail. Good Luck!

  • Suraj Racharla

    Nice to know this important information. Only if Nokia could also make android phones…. That would be so amazing. lts good too see Nokia has a future with Android and they are showing their interest with the tablet

  • Kaushik Medhi

    Cool

  • Uttarwar Anoop

    very soon Nokia s gng to rock !