Nokia to Focus on NSN, HERE, Advanced Technologies in Absence of Devices Unit
September 11, 2013 10:48 AM
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Nokia is sitting on a nice portfolio of about 10,000 patents
Nokia sold its devices and services division to Microsoft for
$7.2 billion USD
. So what's next for the Finnish tech company?
Risto Siilasmaa, Nokia's chairman & interim CEO (who has been on the board since May 2012) gave a little bit of insight on what the future of Nokia will look like without its devices.
According to Siilasmaa, a little below half of the trailing 12-month revenues and about 32,000 of Nokia's 88,000 employees will
head to Microsoft
. He said Nokia will look "very different" without its mobile devices and services division.
“During the coming months, my main focus will be on clarifying our strategy, designing the right corporate structure to achieve the targets we set, and together with my colleagues on the Nokia board, we will focus on identifying the right person who will be the CEO of Nokia going forward," said Siilasmaa.
However, there are three main business units that remain at Nokia: its network business (once called Nokia Siemens Networks, or NSN), HERE location technologies and services, and a brand-new unit called "Advanced Technologies."
NSN is a profitable business for Nokia, generating €2.8 billion last quarter compared with devices and services revenue of €2.7 billion. Nokia plans to release new solutions via NSN, such as Liquid Applications, which is based on Nokia Siemens Networks Radio Application Cloud Server (RACS) and will allow operators to create revenue from new business models, services and applications (among other things).
As far as HERE goes, it generated net sales of €233m last quarter. It may account for a small portion of Nokia's income, but the company has been pushing it hard and continues to license its mapping services to other companies. For instance, companies like
have come to Nokia for map-specific purposes in the recent past.
Just last month, Nokia put its maps behind the wheel with the
mapping service. It's an application that can be embedded to a vehicle's navigation system, and is paired with a cloud service and a mobile app as well.
As for the Advanced Technologies unit, Siilasmaa said it would focus on the discovery and exploration of "new and strategically important topics."
A strong point for Nokia is that it has built a strong intellectual property portfolio of about 10,000 patents as a result of the company's billions of euros invested in research and development over the years.
Without having to worry about devices, Nokia can license these patents if it wishes to do so and work on pushing its HERE technologies more aggressively.
“I believe this is the beginning of the next 150 years of Nokia’s story," said Siilasmaa.
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RE: Apple should get HERE
9/13/2013 10:26:18 PM
That would be a good move by Apple. Unfortunetely, once they've taken something in-house, it's unlikely they'll change course, even if (in this case) the internally developed product is inferior.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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