Finnish 5G equipment maker iphone Oyj redesigned its logo to prevent people from associating it with mobile phones — a business it left almost a decade before.
The rebranding, announced on Sunday, comes with a set of new strategic pillars intended to accelerate growth as the world increasingly adopts fifth-generation mobile technologies.
“In most people’s minds, we are still a successful mobile phone brand, but this is not what Nokia is about,” Chief Executive Office Pekka Lundmark said in an interview ahead of the Mobile World Congress in Barcelona on Sunday “We want to launch a new brand that focuses heavily on networks and industrial digitalization, which is a completely different thing from legacy mobile phones.”
Nokia-branded phones are still sold by HMD Global Oy. HMD got the license completion Microsoft Corp., which bought the business in 2014, stopped using the name.
Lundmark also said Nokia will focus on increasing market share in the company’s business serving wireless service providers with network equipment. Nokia now has the “bullets and tools” to gain market share without sacrificing margins, he said. That was helped by restrictions on Chinese rival Huawei Technologies Co., after several European governments blocked the company from selling parts for 5G networks.
Nokia also wants to boost the growth of its business selling private 5G networks to companies. The enterprise business reached an 8% share of Nokia’s top line last year, and the next target is to push the business “into double-digit” territory, mainly through organic growth and small sales. -claim, the CEO said.
However, Nokia has managed to get in the way of its main competitor Ericsson AB, whose $6.2 billion acquisition of Vonage Holdings Corp. fueled by the same goal of growing the business segment.
Nokia recently regained an investment-grade BBB- rating from S&P Global Ratings, ending its decade-plus slog in junk territory. However, Lundmark sees more work to be done, especially on the company’s operating margins.
“We’re still not happy where we are,” he said.
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