Nokia announced plans to alter its brand name to the first time for almost 60 years. It will also unveil new branding, as the manufacturer of telecom equipment is focusing on rapid growth.
The new logo consists of five distinct shapes that form an acronym NOKIA. The classic blue colour of the previous logo is now replaced by various colors based on the usage.
“There was the association to smartphones and nowadays we are a business technology company,” Chief Executive Pekka Lundmark said to Reuters when she spoke to.
He was speaking in advance of a quarterly update from The company’s on the day before this year’s Mobile World Congress (MWC) that opens in Barcelona on the 1st of January and continues through March 2.
After having taken over the top position in the financially struggle-ridden Finnish firm in the year 2020 Lundmark established a plan that consists of three phases which include: reset, accelerate and increase. After the reset stage is completed, Lundmark said the second phase is about to start.
Although Nokia is still working to expand its service provider business which is where it sells products to telecom firms, the primary current focus is selling equipment to other companies.
“We had very good 21 per cent growth last year in enterprise, which is currently about 8 per cent of our sales, (or) EUR2 billion $2.11 billion) roughly,” Lundmark explained. “We want to take that to double digits as quickly as possible.”
Big tech firms have partnered with manufacturers of telecom equipment like Nokia to offer private 5G networks as well as gears that automate factories to their customers predominantly in the manufacturing industry.
Nokia plans to examine the expansion direction of its companies and explore options, such as the possibility of divesting.
“The signal is very clear. We only want to be in businesses where we can see global leadership,” Lundmark declared.
Nokia’s push towards datacentres and factory automation can also lead to them clash with tech giants including Microsoft or Amazon.
“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 for selling telecom equipment is under threat as the macro environment is reducing demand from markets with high margins like North America, being replaced by the growth of low-margin India and China, causing the rival Ericsson to cut 8500 employees.
“India is our fastest growing market that has lower margins – this is a structural change,” Lundmark explained while adding that Nokia anticipates North America to be stronger during the second half of the year.