Post-Microsoft Deal, Nokia Looks to Stay Focused

September 17, 2013, By Sanjeev Ramachandran

What will Nokia do without its mobile devices and services? After the recent sale, where Microsoft acquired Nokia mobile devices and services for over $7.2 billion, everyone is wondering about the future of this 150 year old company.

Reportedly, about 32,000 of Nokia’s 88,000 employees from Nokia will move to Microsoft. Meanwhile, around half of its 12-month revenues will also move to Microsoft. Well, it is not the end for Nokia, as the company is hopefully looking forward to shape its future business areas.

Recently, Risto Siilasmaa, Nokia’s chairman and interim CEO acknowledged the future plans of his company. According to him, without the mobile devices and service business, Nokia will look different.


Although it is a transformational change for Nokia, the company will remain strong because of healthy finance.

He also pointed out three core products such as NSN, Here and Advanced Technologies, which can drive the legacy of his company. In his words, each of these products is a leader in technology and innovation.

The major future product from Nokia will be the NSN, which Siilasmaa recognized as the first element of Nokia Reinvented.

It sells products and services to companies around the world and is strong in LTE. Currently this service has more than 600 customers in 120 countries, and providing service to almost 2.5 billion subscribers.

Siilasmaa suggested that NSN will continue to launch uniquely innovative solutions such as the Liquid Applications that was announced earlier this year.

Here is Nokia’s another business product that it wants to expand. This service offers real-time traffic reports, maps, and cloud-based information to drivers of Internet-connected cars.

This service is already available in four out of five cars with in-dash navigation. Moreover, Microsoft is one of the key customers of this mapping service from Nokia. Meanwhile, Nokia has recently teamed up with Mercedes-Benz to create maps for self-driving cars.


The last one would be the Advanced Technologies. In this new business Nokia will focus on developing new technologies for video and audio encoding. The company will invest in areas like nano-technology and graphene that focus on flexible displays and devices.

According to Siilasmaa, the company’s past investment in research and development has helped them to build the largest and strongest intellect property portfolio in the industry. Currently the company holds around 10,000 selected patents that they are looking to expand to make revenue in the future.

Although the location technologies and patent portfolios don’t sound attractive, Nokia need to depend on these services to drive revenue and profit.

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