Nokia to stop production of phones- New CEO


Nokia’s new CEO Rajeev Suri took the stage today,
and mapped out the future of the Finnish
telecommunications giant after its phone business
got acquired by Microsoft.
First off, as sad as this sounds, and despite some
unsubstantiated rumors, Nokia doesn’t plan on
making phones anymore.

“We are not looking to a direct consumer return to
hand sets per se,” were his actual words.
Still, there is a silver lining, and it is that there is an
extremely high interest in licensing the brand, he
added, so at some point in the longer term the
Nokia name “will return to the consumer world.”

Now, whether this will be with phones, or other
devices and maybe services, remains to be seen,
but the hopes that Nokia will quickly start churning
out Android handsets seems dead and buried now.

As for the other aspects of the company, the CEO
mentioned that it won’t have its HERE brand of
navigation software compete directly with Google
Maps, but instead rely on third-party licensees like
Amazon, Microsoft or Yahoo, in business-to-
business partnerships. We’d say that with the
release of the beta app for Android and iOS this
ship had sailed, as the app offers options lacking in
Google Maps, like offline navigation, but whatever
rocks the boat.

Nokia’s CEO expects that all three business units –
Networks, Technologies and the mapping business
– will be returning to growth and profitability very
soon, but it’s the end of the line for Nokia phones
piece that strikes us the most in the end.

source: ZDNet

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