Nokia’s new logo is modern, emphasizing that the Finnish company no longer makes phones.
On February 26, Nokia launched a new brand identity after nearly 60 years. This is a move that marks a change in business strategy, aiming for strong growth in the future.
The new logo consists of 5 simple flat shapes that form the word NOKIA. Removed and replace the legendary blue color of the old icon with different background colors depending on the intended use.
CEO Pekka Lundmark said many people still think Nokia is making phones. That is also part of the reason why the company changed its logo, to emphasize the current business area.
“We wanted to launch a new brand, focus on networking and digitize the industry. It’s completely different from mobile,” Lundmark told Bloomberg.
According to Reuters, the logo was introduced by Nokia on the eve of the opening of the MWC 2023 mobile exhibition in Barcelona (Spain).
After holding the position of CEO of Nokia since 2020, Lundmark set out a three-stage development strategy: re-establishing, accelerating, and scaling. Changing the logo means the first phase is complete.
In the coming time, Nokia will evaluate the growth path of different business segments to come up with appropriate strategies, including divestment.
Nokia still aims to develop its services business, which sells devices to carriers. However, the company will shift its focus to providing 5G equipment for factories and data centers, competing with Microsoft and Amazon.
“We had very good growth last year with 21% in the business division, accounting for 8% of total revenue, or $2.11 billion. We wanted to get the ratio to double digits as much as possible. as soon as possible,” Lundmark said.
The field of telecommunications equipment is under pressure due to the volatile macroeconomic situation. Demand in high-margin markets such as North America is dwindling, while India with poor margins has grown sharply.
“India is our fastest growing market with low margins. It’s a structural change,” Lundmark said. However, he still expects the North American market to recover in the second half of this year.
The phone manufacturing division no longer belongs to Nokia after it was acquired by Microsoft in 2014. Nokia-branded phone manufacturers established and bought the rights.
According to Engadget, it is unclear whether HMD Global will use the new Nokia logo on the next phone models.
