HIGHLIGHTS
* Nokia has unveiled a new brand logo for the first time in 60 years of its existence.
* The new logo has five different shapes that form the word ‘Nokia’.
* The iconic Blue colour has been changed to various new colours depending on the use.
Nokia, for the first time in its existence of 60 years, has announced a change to its brand identity with a completely new logo.
The new logo has five different shapes that form the word ‘Nokia’. The iconic Blue colour has been changed to various new colours depending on the use.
In an interview with Reuters, Chief Executive Pekka Lundmark, said “There was the association to smartphones and nowadays we are a business technology company.”
Lundmark set out a strategy after taking over the position at the Finnish company in 2020, which included the mantra of reset, accelerate, and scale.
According to the company, the reset stage is now complete, so Lundmark said the second stage is now beginning.
Nokia still wants to grow its service provider business, where it sells equipment to telecom companies; the main focus is now to sell gear to other enterprises.
Nokia Logo Change
“We had very good 21 percent growth last year in enterprise, which is currently about 8 percent of our sales, (or) 2 billion euros ($2.11 billion) roughly. We want to take that to double digits as quickly as possible.“ – Chief Executive Pekka Lundmark
Technology firms are partnering with telecom gear makers such as Nokia to sell private 5G networks and gears for automated factories to customers. Nokia plans to review the growth path of its different businesses and consider alternatives, including divestment.
The signal is very clear. We only want to be in businesses where we can see global leadership,” Lundmark said.
Nokia aims to take on Microsoft and Amazon by moving forward with automation and data centres.
“There will be multiple different types of cases, sometimes they will be our partners. sometimes they can be our customers. and I am sure that there will also be situations where they will be competitors,” said the top executive.
Lundmark says that India is its fastest-growing market that has lower margins and this is a structural change.
Nokia expects North America to be stronger in the second half of the year.
Iconic Nokia logo Redesigned
According to Reuters, the new logo comprises five different shapes forming the word ‘Nokia’. The iconic blue colour of the old logo has been dropped for a range of colours depending on the use.
Finnish manufacturer of 5G equipment, Nokia redesigned its logo to avoid being associated with mobile phones, a sector it left almost ten years ago.
CEO Lundmark said that Nokia is no longer just a smartphone company, but a “business technology company.”
He was speaking ahead of a business update by the company on the eve of the annual Mobile World Congress (MWC) which opens in Barcelona on Monday and runs until 2 March.
Besides unveiling a new logo, the brand also outlined how it expects networks to evolve in the next seven years or so, and how it is planning to evolve in line with these changes.
According to Livemint, the CEO said in an interview,
“We want to launch a new brand that is focusing very much on the networks and industrial digitalisation, which is a completely different thing from the legacy mobile phones.”
HMD Global Oy continues to sell mobile devices with the Nokia brand. Once Microsoft Corp., which acquired the company in 2014, stopped using the name, HMD obtained the rights.
Change in Strategy
While Nokia still aims to grow its service provider business, selling equipment to telecom companies, its main focus is now to sell gear to other businesses.
“We had very good 21 per cent growth last year in enterprise, which is currently about eight per cent of our sales, (or) 2 billion euros ($2.11 billion) roughly,” Lundmark said. “We want to take that to double digits as quickly as possible.”
Major technology firms have been partnering with telecom gear makers such as Nokia to sell private 5G networks and gears for automated factories to customers, mostly in the manufacturing sector.
Lundmark said that Nokia will focus on adding market share in the company’s business by serving wireless service providers with network equipment.
Nokia now has “the ammunition and the tools,” according to him, to gain market share without compromising margins.
This has been made possible by limits placed on Huawei Technologies Co., a Chinese rival, after some European governments forbade the business from supplying components for 5G networks, according to Livemint.
Nokia also plans to review the growth path of its different businesses and consider alternatives, including divestment.
According to Telecoms,
CEO Lundmark said, “We see the potential of digital to transform business, industry and society with an opportunity for significant gains in productivity, sustainability, and accessibility.
Our market-leading critical networking technology is increasingly needed by customers and partners in every industry. We see a future where networks go beyond connecting people and things.
They’re adaptable, autonomous and consumable. They are networks that sense, think and act, and they maximise the opportunity of digitalisation.”
“Today we share our updated company and technology strategy with a focus on unleashing the exponential potential of networks – pioneering a future where networks meet cloud. To signal this ambition, we are refreshing our brand to reflect who we are today – a B2B technology innovation leader. This is Nokia, but not as the world has seen us before,” the CEO added.
“The signal is very clear. We only want to be in businesses where we can see global leadership,” he said.
Market Competition
Nokia’s move toward factory automation and datacentres will also see them locking horns with big tech companies, such as Microsoft & Amazon, reported Reuters.
“There will be multiple different types of cases, sometimes they will be our partners … sometimes they can be our customers… and I am sure that there will also be situations where they will be competitors.”
The market to sell telecom gear is under pressure with the macro environment denting demand from high-margin markets such as North America, being replaced by growth in low-margin India, pushing rival Ericsson to lay off 8,500 employees.
“India is our fastest growing market that has lower margins – this is a structural change,” Lundmark said, adding that Nokia expects North America to be stronger in the second half of the year.
Additionally, Nokia decided against following in the footsteps of its rival Ericsson AB, whose $6.2 billion purchase of Vonage Holdings Inc. was motivated by a similar need to expand its business.
The Finnish company just ended its more than ten-year struggle in junk status by regaining an investment-grade BBB- rating from S&P Global Ratings.
Lundmark believes there is still more to be done, particularly with regard to the operating margins of the business, as per Livemint.
“We are not happy yet with where we are,” he said.
Brands who Changed their Names to Signal Strategy Shift
Facebook – Meta
In October 2021, Facebook CEO Mark Zuckerberg announced that the social media giant will change the name of its holding company to Meta, in a rebrand that came as the company faced several public relations crises.
Zuckerberg outlined that the new name goes with the company’s virtual-reality vision for the future, according to The Guardian.
Dunkin’ Donuts – Dunkin
In an effort to reinvent itself, the business dropped the word “Donuts” in 2019. The corporation intended to pay homage to the chain’s beverage sales, which made up more than half of its revenue, even while customers would still recognise its colours and typography, as per Economic Times.
FAQ’s on Nokia Logo
1) How has the Iconic Nokia logo been redesigned?
According to Reuters, the new logo comprises five different shapes forming the word ‘Nokia’. The iconic blue colour of the old logo has been dropped for a range of colours depending on the use.
Finnish manufacturer of 5G equipment, Nokia redesigned its logo to avoid being associated with mobile phones, a sector it left almost ten years ago.
CEO Lundmark said that Nokia is no longer just a smartphone company, but a “business technology company.”
He was speaking ahead of a business update by the company on the eve of the annual Mobile World Congress (MWC) which opens in Barcelona on Monday and runs until 2 March.
2) What is the change in strategy for Nokia ?
While Nokia still aims to grow its service provider business, selling equipment to telecom companies, its main focus is now to sell gear to other businesses.
“We had very good 21 per cent growth last year in enterprise, which is currently about eight per cent of our sales, (or) 2 billion euros ($2.11 billion) roughly,” Lundmark said. “We want to take that to double digits as quickly as possible.”
Major technology firms have been partnering with telecom gear makers such as Nokia to sell private 5G networks and gears for automated factories to customers, mostly in the manufacturing sector.
Lundmark said that Nokia will focus on adding market share in the company’s business by serving wireless service providers with network equipment.
Nokia now has “the ammunition and the tools,” according to him, to gain market share without compromising margins.
This has been made possible by limits placed on Huawei Technologies Co., a Chinese rival, after some European governments forbade the business from supplying components for 5G networks, according to Livemint.
Nokia also plans to review the growth path of its different businesses and consider alternatives, including divestment.
According to Telecoms, CEO Lundmark said, “We see the potential of digital to transform business, industry and society with an opportunity for significant gains in productivity, sustainability, and accessibility.
Our market-leading critical networking technology is increasingly needed by customers and partners in every industry. We see a future where networks go beyond connecting people and things.
They’re adaptable, autonomous and consumable. They are networks that sense, think and act, and they maximise the opportunity of digitalisation.”
“Today we share our updated company and technology strategy with a focus on unleashing the exponential potential of networks – pioneering a future where networks meet cloud. To signal this ambition, we are refreshing our brand to reflect who we are today – a B2B technology innovation leader. This is Nokia, but not as the world has seen us before,” the CEO added.
“The signal is very clear. We only want to be in businesses where we can see global leadership,” he said.
Market competition
Nokia’s move toward factory automation and datacentres will also see them locking horns with big tech companies, such as Microsoft & Amazon, reported Reuters.
“There will be multiple different types of cases, sometimes they will be our partners … sometimes they can be our customers… and I am sure that there will also be situations where they will be competitors.”
The market to sell telecom gear is under pressure with the macro environment denting demand from high-margin markets such as North America, being replaced by growth in low-margin India, pushing rival Ericsson to lay off 8,500 employees.
“India is our fastest growing market that has lower margins – this is a structural change,” Lundmark said, adding that Nokia expects North America to be stronger in the second half of the year.
Additionally, Nokia decided against following in the footsteps of its rival Ericsson AB, whose $6.2 billion purchase of Vonage Holdings Inc. was motivated by a similar need to expand its business.
The Finnish company just ended its more than ten-year struggle in junk status by regaining an investment-grade BBB- rating from S&P Global Ratings.
Lundmark believes there is still more to be done, particularly with regard to the operating margins of the business, as per Livemint.
“We are not happy yet with where we are,” he said.
Also Read: Nokia X30 5G launched in India: Price, Specifications & Availability Revealed