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Nokia squashes rumors of entering smartphone business

Reports of Nokia entering the smartphone business next year, emerged this week. However, Nokia has issued a statement that it will no longer manufacture or sell consumer smartphones.nokia-android-phone-rumors

Until the second half of 2016, Nokia will not be able to use it brand name as it has inked a deal with Microsoft during its acquisition of Nokia devices and services unit in 2014. The rumors were actually hard to believe as Nokia has lost most of its engineers and designers to Microsoft and other firms. Nokia does not own any smartphone operating system, and is likely to face a tough time in the fierce market.

“These reports are false, and include comments incorrectly attributed to Nokia Networks executive,” said Nokia.

Nokia stated that it does not plan to manufacture smartphones out of its R&D facility in China. It was rumored that the company was secretly hiring staff, and products  were under development. However, the statement “currently has no plans” did lead to speculation that the company might be planning on such a move in the future.

Recently, Nokia acquired Alcatel-Lucent for $16.6 billion, which transformed the company into European tech giant. The company might also have plans to sell its Here mapping services or further improve it. The tech giant is contemplating on its next action, and a major announcement is expected to be made, about its business plans.

Nokia released the statement:

Nokia notes recent news reports claiming the company communicated an intention to manufacture consumer handsets out of a R&D facility in China. These reports are false, and include comments incorrectly attributed to a Nokia Networks executive. Nokia reiterates it currently has no plans to manufacture or sell consumer handsets

The statement is clear worded in a business style, which does not mention about licensing the brand name to other manufacturers. The Finns are known for their expertise in smartphone manufacturing, and the fact that Nokia might form a partnership with upcoming manufacturers is not ruled out. Several users still use Nokia phones which started the era of smartphones, indicating the massive potential of the brand name.

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About Anirudh Madhav

A movie buff, a bookworm, and a compulsive doodler. All posts by Anirudh

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