- Nokia rolls out strategy shift for the first time in 60 years
- The handout image shows a mockup of the new Nokia logo
As the telecom equipment maker emphasises aggressive growth, Nokia announced plans on Sunday to change its brand identity for the first time in nearly 60 years. There are five different shapes that make up the word NOKIA in the new logo.
Finnish company Nokia, which makes 5G equipment, redesigned its logo in an effort to avoid association with mobile phones, a sector it left almost a decade ago. Although the company still aims to grow its service provider business, it now focuses more on selling gear to other companies.
What’s the logo?
There is no longer a blue colour in the old logo; instead, a range of colours are available depending on the usage.
Nokia continues to focus on growing its service provider business, where it sells equipment to telecom companies, but its main focus now is selling gear to other businesses. Several major technology companies have partnered with telecom gear makers, such as Nokia, to sell private 5G networks and automated factories to manufacturers. Moreover, there are plans for Nokia to review its different businesses’ growth paths and consider alternatives, including divesting them.
On the eve of the Mobile World Congress (MWC) in Barcelona, which opens on Monday and runs until 2 March, the company was giving an update on its business. “There was the association to smartphones, and nowadays we are a business technology company,” said CEO Pekka Lundmark to Reuters. “India is our fastest growing market that has lower margins – this is a structural change,” Lundmark explained. Nokia expects North America to be stronger in the second half of the year.
A macroeconomic environment results in lower demand for telecom gear from high-margin markets like North America, which is being replaced by low-margin India, pushing Ericsson to lay off 8,500 employees.