For the first time in nearly 60 years, Nokia has announced a brand identity change as the once-dominant mobile phone giant focuses on stronger growth.
The new Nokia logo includes stylized characters that spell out “Nokia.” The iconic sea blue color of the old logo has been replaced with more vibrant colors. According to CEO Pekka Lundmark, while the company was previously associated with smartphones, today Nokia is a technology business.
After taking over the top spot at Nokia in 2020, Lundmark outlined a three-stage strategy: reset, accelerate, and expand. With the reset phase complete, he said the company is now entering the accelerate phase.
While Nokia still wants to grow its services business, where it sells equipment to telecom companies, the company’s focus now is on selling equipment to other businesses. Lundmark said the enterprise segment grew 21% last year and now accounts for about 8% of sales, or around €2 billion. “We want to double that as fast as we can.”
Large technology firms are teaming up with telecoms equipment makers like Nokia to sell equipment for automation and private 5G networks to customers, primarily in the manufacturing sector. Nokia plans to review the growth trajectories of its units and consider replacements, including the possibility of divestments.
“The signal is very clear. We only want to be in businesses that can lead globally,” Lundmark told Reuters.
Nokia’s strategy will put it in competition with big names like Microsoft and Amazon. Additionally, the telecom equipment market is facing pressure from the macro environment, with demand eroding from high-profit markets such as North America. Ericsson, Nokia’s rival, has had to lay off 8,500 employees.
Currently, India is Nokia’s fastest-growing market but with low-profit margins. However, Nokia hopes that North America will be stronger in the second half of this year.