It was announced on Sunday that Nokia (NOKIA.HE) is preparing to completely change its brand identity for the first time in nearly 60 years, including a new logo as part of the company’s aggressive growth plans.
In the new logo, there are five different shapes, which together form the word NOKIA. With respect to the colour of the old logo, it has been replaced with a variety of different colours based on how it will be used.
The company was once associated with smartphones, but now it has evolved into a business technology company, said Pekka Lundmark, the company’s chief executive.
This was in advance of a business update by the company on the eve of the annual Mobile World Congress (MWC), which will kick off on Monday in Barcelona and continue until March 2.
When Lundmark took over the role of CEO of the struggling Finnish company in 2020, he outlined a strategy consisting of three stages: reset, accelerate, and scale. With the reset stage now complete, Lundmark explained that the second stage of the project is now underway.
Despite Nokia’s desire to continue to expand its service provider business, in which it sells equipment to telecom companies, the company’s main focus is now on selling equipment to other companies outside the telecom industry.
The enterprise segment of our business grew by almost 21% last year, which is about 8% of our sales, or approximately 2 billion euros ($2.11 billion), according to Lundmark. In order to increase that number as quickly as possible, we want to make it double digits.”
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In recent years, major technology firms have partnered with telecom gear makers such as Nokia in order to sell private 5G networks and gear for automated factories to customers mostly in the manufacturing sector.
There has been a plan to review the growth path of Nokia’s different businesses in order to consider alternative growth paths, such as divestment, in the future.
Despite the fact that we want to be in businesses that are in a position to be global leaders, the signal is very clear.
As Nokia moves toward automation of factories and datacenters, it will also find itself facing off against big technology companies like Microsoft (MSFT.O) and Amazon (AMZN.O) that are vying for market share.
In our opinion, there will be multiple different types of cases that will occur over the course of our business relationship, sometimes they will be our partners, sometimes they will be our customers, and I am sure that there will also be situations where they will be our competitors.
There is a lot of pressure on the telecom equipment market, as the macroeconomic environment is reducing demand from high-margin global markets such as North America, which is being replaced by growth in low-margin Asian markets, including India, which has forced rival Ericsson to lay off 8,500 employees as a result.
Lundmark said that Nokia is expecting the second half of the year to be stronger than the first half of the year because India is our fastest growing market and has lower margins because of this structural change.
