Nokia reveal new logo, shifts focus from smartphones to business tech.
CEO Pekka Lundmark outlined plans to accelerate growth in the enterprise market, which currently makes up 8% of sales, with a goal of reaching double digits as quickly as possible. Nokia has undergone a major rebranding as it looks to aggressively grow its business technology offerings. The company, which is best known for its once-dominant position in the mobile phone market, has unveiled a new logo and brand identity that reflects its changing focus.
The new logo comprises five different shapes forming the word Nokia, with the iconic blue color of the old logo replaced by a range of colors depending on its use.
The move comes as CEO Pekka Lundmark outlined plans to accelerate growth in the enterprise market, which currently makes up 8% of sales, with a goal of reaching double digits as quickly as possible.
Speaking ahead of a business update on the eve of the annual Mobile World Congress, Lundmark explained that Nokia is shifting its focus from selling equipment to telecom companies to selling gear to other businesses.
Major technology firms are increasingly partnering with telecom gear makers to sell private 5G networks and gears for automated factories to customers, mostly in the manufacturing sector.
Nokia plans to review the growth path of its different businesses and consider alternatives, including divestment.
“The signal is very clear. We only want to be in businesses where we can see global leadership,” Lundmark said.
The company’s move toward factory automation and data centers will also see it competing with big tech companies such as Microsoft and Amazon. Lundmark acknowledged that there will be situations where they will be competitors, but said there will also be opportunities for partnerships and customer relationships.
The market for telecom gear is under pressure, with macroeconomic factors denting demand from high-margin markets such as North America, which is being replace by growth in low-margin India. Rival Ericsson recently announced layoffs of 8,500 employees due to the shifting market.
Lundmark acknowledged that India is Nokia’s fastest-growing market, with lower margins. He expects North America to be stronger in the second half of the year, but emphasized that Nokia’s focus is on achieving global leadership in its chosen markets.
The rebranding and shift in focus reflect Nokia’s strategy of resetting the business, accelerating growth, and scaling up its operations. With the reset stage now complete, Lundmark said the company is ready to begin the second stage of its strategy and is optimistic about its future growth prospects in the business technology market.
