Nokia Shifts Focus to Business Technology in Major Rebrand
The Finnish telecom equipment maker has dropped its iconic blue logo and plans to double its enterprise sales as it shifts focus to gear sales for other businesses.
Nokia has announced a new brand identity for the first time in nearly 60 years as the company shifts its focus to aggressive growth in the business technology sector. The telecom equipment manufacturer has dropped its iconic blue logo and replaced it with a new design comprising five shapes forming the word NOKIA. The company’s CEO, Pekka Lundmark, stated that Nokia’s association with smartphones is no longer appropriate and that the company is now a business technology company.
Doubling Enterprise Sales
According to Lundmark, Nokia’s main goal is to double its enterprise sales from 8% to double digits as quickly as possible. Nokia still aims to grow its service provider business, where it sells equipment to telecom companies, but its main focus is now on selling gear to other businesses. The company plans to review the growth path of its different businesses and consider alternatives, including divestment. Lundmark said that Nokia only wants to be in businesses where it can see global leadership.
Shift Towards Factory Automation and Data Centres
Nokia’s move towards factory automation and data centres will see it competing with big tech companies such as Microsoft and Amazon. The market to sell telecom gear is under pressure, with macro environments denting demand from high-margin markets such as North America, being replaced by growth in low-margin India. Nokia plans to sell private 5G networks and gears for automated factories to customers, mostly in the manufacturing sector, and partner with other technology firms.
MWC Business Update
The announcement of Nokia’s new branding came ahead of a business update by the company on the eve of the annual Mobile World Congress (MWC) in Barcelona. The conference, which runs from February 27 to March 2, provides an opportunity for Nokia to showcase its latest developments and strategies for growth.
In summary, Nokia’s new brand identity is a reflection of its shifting focus towards the business technology sector. The company’s plan to double its enterprise sales and sell gear to other businesses is in line with its goal of achieving global leadership in all its businesses. The move towards factory automation and data centres will see Nokia compete with big tech companies while selling private 5G networks and gear for automated factories to customers in the manufacturing sector.
