With an unhinged focus on growth, Nokia announced plans to make changes to its brand identity for the first time in nearly 60 years on Sunday and made alterations to its logo.
The word Nokia is represented by five different shapes in the new logo. The old logo’s signature blue colour has been replaced with a variety of colours.
Chief Executive Pekka Lundmark said that there was the association to cell phones and now it has transformed into a business technology company. He made the addressal prior to a business update by the company on the eve of the annual Mobile World Congress (MWC), which is all set to kick off in Barcelona on Monday and end on 2nd March.
Lundmark devised a three-stage strategy in 2020 after acquiring leadership of the plummeting Finnish business. The stages were reset, accelerate, and scale. Lundmark stated that the second stage has commenced now that the reset stage is complete.
Welcome to the Nokia MWC Barcelona 2023 Business Update. Ready to experience exponential potential? This is Nokia, but not as you’ve seen us before. Join us live today February 26, 2023 at 2 pm CET. #MWC23 https://t.co/mYcUHAEXkw
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Nokia’s central emphasis is now on selling equipment to other firms, though it still hopes to expand its service provider sector, where it sells equipment to telecom companies. Lundmark additionally said that they have achieved an impressive 21% growth in enterprise last year, which is presently about 8% of the revenues, (or) 2 billion euros ($2.11 billion) roughly. He also said that the firm will now aspire to increase that to double digits as soon as it can.
In a bid to sell private 5G networks and equipment for automated factories to consumers, primarily in the manufacturing sector, tech giants have partnered with telecom equipment manufacturers like Nokia.
Nokia plans on analysing the growth path of its diverse businesses and opt for alternatives such as divestment. Lundmark highlighted that Nokia desires to be involved in only those businesses where the potential of global leadership is significantly high.
Nokia will be competing against major tech firms like Microsoft and Amazon as they move towards data centres and factory automation. “There will be a variety of scenarios, some of which may involve our partners and others with whom we do business, and I’m certain there will be circumstances in which they will compete,” he said.
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With development in low-margin India offsetting demand from high-margin areas like North America, the market for telecom equipment is under pressure, forcing competitor Ericsson to lay off 8,500 workers. Lundmark stated that Nokia’s fastest-growing market, India, has lower margins. “This is a structural change,” he added. Nokia predicts that North America will perform better in the second half of the year.
