Senior telco leaders secure key partnerships with
Nokia, Microsoft & FIH Mobile Ltd.
Helsinki, Finland – 18 May, 2016 – Nokia-branded mobile phones and tablets are set to return to the global consumer market, created by a new company, HMD global Oy (“HMD”). HMD has been founded to provide a focused, independent home for a full range of Nokia-branded mobile phones and tablets.
HMD has signed a strategic licensing agreement with Nokia Technologies, the advanced technology and licensing unit of Nokia Corporation, giving HMD sole use of the Nokia brand on mobile phones and tablets worldwide for the next decade, and cellular standard essential patent licenses.
HMD intends to leverage and grow Nokia’s global brand reach, delivering beautifully designed, high quality products to people all over the world in line with Nokia’s brand promise. HMD intends to invest over USD 500 million over the next three years to support the global marketing of Nokia-branded mobile phones and tablets, funded via its investors and profits from the acquired feature phone business.
To complete its portfolio of Nokia branding rights, HMD has conditionally agreed to acquire from Microsoft the rights to use the “Nokia” trademark on feature phones until 2024, and design rights relating to Microsoft’s Feature Phone Business. This transaction is expected to close in H2 2016. Together, these agreements will make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets.
The remainder of Microsoft’s feature phone business assets, including its Hanoi manufacturing facility, and global distribution, fulfilment and supply chain networks, will conditionally be acquired by FIH Mobile Limited (“FIH”), a subsidiary of Hon Hai Precision Industries (trading as Foxconn Technology Group). HMD has signed an agreement with FIH and Nokia Technologies to establish, on closing of the Microsoft transactions, a collaboration framework to support the building of a global business for Nokia-branded mobile phones and tablets. This agreement will give HMD full operational control over sales, marketing and distribution of its Nokia-branded devices, with exclusive access to the pre-eminent global sales and distribution network to be acquired by FIH from Microsoft, as well as access to FIH’s world-leading device manufacturing and engineering capabilities, and its growing suite of proprietary mobile technologies and components.
HMD is entering the global handset market at a time when consumers demand their mobile devices be part of a strong ecosystem that brings a compelling user experience delivered at a competitive price. HMD plans for its future Nokia-branded smartphones and tablets to run on the Android operating system, uniting one of the world’s iconic mobile brands with the leading mobile software and app development community.
HMD will be managed by an experienced group of mobile industry leaders. Arto Nummela, who previously held senior positions with Nokia and is currently the head of Microsoft’s Mobile Devices business for Greater Asia, Middle East and Africa as well as Microsoft’s global Feature Phones business, will serve as CEO on closing of the Microsoft transaction. HMD’s President on closing will be Florian Seiche, currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, who previously held leadership roles at Nokia, HTC and other global brands.
Arto Nummela, CEO of HMD global, said:
“We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers. Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand, and our extensive experience in sales and marketing. We will work with world class manufacturing and distribution providers to move quickly and deliver what customers want.”
Ramzi Haidamus, president of Nokia Technologies, said:
“Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”
Vincent Tong, Chairman of FIH, added:
“We are looking forward to fostering a strong and long-term collaboration with HMD global and Nokia. We are impressed by the experience and expertise of the HMD management team and are committed to supporting them with our manufacturing, technology and supply chain capabilities, to capture market opportunities together in the future."
Subject to receipt of all necessary regulatory approvals the transaction between HMD and Microsoft is anticipated to close in the second half of 2016. HMD will make further announcements about its plans and product roadmaps in due course.
Registered and headquartered in Helsinki, Finland, HMD is owned by Smart Connect LP, a private equity fund managed by Jean-Francois Baril, a former Nokia executive, as well as by HMD management. The Board of HMD will consist of five members, including one representative from Nokia.
Registered and headquartered in Helsinki, Finland, HMD is a new private venture founded to create a new generation of Nokia-branded mobile devices. HMD will be run by a group of experienced industry leaders, including CEO-designate Arto Nummela, who previously held senior roles at Nokia and is currently the head of Microsoft’s Mobile Devices business for Greater Asia, Middle East and Africa as well as Microsoft’s global Feature Phones business, and president-designate Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, and previously held key roles at Nokia, HTC and other global brands. www.hmdglobal.com
FIH MOBILE LIMITED (HKEx Stock Code: 2038), a member of HON HAI/FOXCONN Technology Group, is a vertically integrated services provider for the mobile device industry worldwide. It provides a full range of solutions to its customers in connection with end-to-end mobile devices business.
Arto Nummela is currently the Vice President of Mobile Devices Business of Microsoft in Greater Asia, Middle East and Africa region.
Subject to regulatory approval and the closing of the Microsoft feature phone transaction to the new company, Arto will become CEO of HMD global, the holding company & exclusive licence holder of Nokia phones.
As an experienced figure in the telecoms industry, Arto has a proven track record in commercial success, building long-term partnerships to enable global business innovation and growth. An intrinsic part of this process - is establishing and motivating strong teams around him – as well as being committed to continued personal growth.
Arto has deep roots in Finland, but has a genuinely global perspective built through experience. His insights into consumer business have been deepened by leading diverse teams from Europe, the Americas, India, the Middle East, Africa and the Asia-Pacific region, including Australia, China and Japan.
Having been an intrinsic part of the original Nokia team, Arto’s list of accomplishments include; open-distribution model development, strategic alliances, joint ventures and partnerships, market-based pricing strategies, global R&D management - specifically for high end smartphone devices, ramping up new global phone architecture work, as well as ramping up product portfolio for new cellular technology generation, alongside a very strong focus on employee loyalty and retention. Arto has led teams in strategic and tactical global product planning, developing and launching new products, as well as brand development and broader market expansion. From 2011 to 2013, Arto also served as a member of the board of directors for CommNexus, a California-based tech incubator, built for start-ups.
Since 2015, Arto has been driving the Microsoft Devices business in Greater Asia, the Middle East and Africa, with global leadership of the Feature Phones business. He joined Nokia in 1994, leading through Microsoft’s 2014 acquisition of the company.
Florian Seiche is a recognised name in the telecoms industry, having been one of the key figures behind the launch and subsequent growth of the HTC brand. He has since gone on to develop and drive the mobile divisions at Nokia and most recently at Microsoft, in the role of VP of Sales across Europe.
Subject to regulatory approval and the closing of the Microsoft feature phone transaction to the new company, Florian will become President of HMD global, the holding company & exclusive licence holder of Nokia phones.
Well known for his lynchpin role as President of HTC EMEA (Europe, Middle East, and Africa), Florian not only established HTC’s EMEA operations in 2005, he went on to oversee the growth of HTC’s business and brand to become one of the most critically acclaimed phone names in the world.
His big brand global experience is far reaching. Prior to joining HTC, Florian was the Global Director of Devices for the Orange Group in London (2003-2005). Under his leadership, Orange successfully rolled out its ‘signature device’ program, which contributed considerably to increased phone usage and ARPU, while at the same time increasing customer loyalty by delivering a compelling user experience.
Florian began his career at Siemens, where he worked for more than ten years. Between January 2000 and February 2003, Florian served as Vice President and General Manager of Siemens Mobile Phones USA in San Diego, leading Siemens’ mobile phone entry into North America.
Having worked extensively across both sales and marketing, Florian boasts an intimate understanding of both consumer trends and demands, as well as the requirements of the key stakeholders in the telecoms supply chain.
Florian holds both Master’s and Doctorate degrees in Economics from the University of Cologne, Germany. He lives in Windsor, UK with his wife Michele and son Jan-Philipp.