Good news: Nokia confirms comeback to smartphone business with Android phones, tablets

About two and half years after selling its devices and services business to Microsoft, iconic mobile phone brand Nokia has today confirmed that it is returning to the mobile phones and tablet market.

The Finland based company has signed a strategic brand and intellectual property licensing agreement with a newly formed Finland firm HMD Global to develop Nokia-branded mobile phones and tablets for the next ten years.

As per the agreement, Nokia has granted an exclusive global license to HMD Global (excluding Japan) and will receive royalty payments for sales of Nokia-branded mobile products, covering both brand and intellectual property rights. The company said HMD's new smartphone and tablet portfolio will be based on Android platform.

Nokia will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments and will take a seat on HMD's HMD's Board of Directors but won't be making any financial investment or holding equity in HMD.

Nokia Technologies said it has also signed an agreement with FIH mobile that will own the remainder of Microsoft's feature phone business assets, including manufacturing, sales and distribution.

As per the agreement, both the companies will form a collaboration framework to "support the building of a global business for Nokia-branded mobile phones and tablets".

"Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model." said Ramzi Haida, President of Nokia Technologies.

Image credit: Indiatimes