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Nokia changes logo: As the telecom equipment manufacturer concentrates on fast growth, Nokia (NOKIA.HE) revealed plans to alter its brand identity for the first time in nearly 60 years, complete with a new logo, on Sunday.
In the new logo, designers used five different shapes to represent Nokia, and they replaced the previous logo’s signature blue color with a variety of colors depending on the purpose.
According to Chief Executive Pekka Lundmark, “There was the association to cellphones and today we are a business technology company.”
On the eve of the annual Mobile World Congress (MWC), which begins in Barcelona on Monday and lasts until March 2, he was addressing before a business update by the company.
Lundmark devised a three-stage strategy in 2020 after assuming leadership of the faltering Finnish business. The stages were reset, accelerate, and scale. Lundmark stated that the second stage has started now that the reset stage is over.
Nokia’s primary focus is now on selling equipment to other firms, though it still hopes to expand its service provider sector, where it sells equipment to telecom companies.
According to Lundmark, “We achieved really good 21% growth in enterprise last year, which is presently about 8% of our revenues, (or) 2 billion euros ($2.11 billion) roughly.” We want to increase that to double digits as soon as we can.
“Nokia’s Strategic Shift to Datacenters and Automation”
To sell private 5G networks and equipment for automated factories to consumers, particularly in the manufacturing sector, major technology companies have partnered with telecom equipment manufacturers like Nokia.
Nokia intends to evaluate the development of each of its companies and explore all available options, including divestiture.
“The signal is quite strong. We only desire positions in companies where we can observe global leadership “said Lundmark.
Nokia’s thrust towards datacenters and factory automation will put them in competition with major IT players like Microsoft (MSFT.O) and Amazon (AMZN.O).
There will be many various kinds of cases; occasionally they will be our partners, occasionally they might be our clients, and I’m sure there will also be circumstances where they will be competitors.
With development in low-margin India replacing demand from high-margin areas like North America, the market for telecom equipment is under strain, forcing competitor Ericsson to lay off 8,500 workers.
According to Lundmark, Nokia’s fastest-growing market, India, has lower margins. This is a structural change, he added. However, Nokia anticipates North America to perform better in the second half of the year.