Good point but I am hopeful Nokia will do some due diligence before lending its name and also have some clauses to protect its name.
That's a good idea. However, it is different in that only the manufacture is outsourced. With Nokia's model, the risk is also outsourced! The manufacturer, pays for the logisitics, the capital outlay, the losses etc.
Really this is like a super licensing play, where you get the benefit of the licensing fees + the design + the brand, but you take on everything else yourself.
Nokia gets, presumably, the value of the royalties + the value of the design + the value of the brand.
It's a simple notion. There must be an example out there.
Hi Planet, happy Thanksgiving and to your family and friends. Enjoy the holiday, and thank you for your kind attention. Cheers!
I see the LAVA articles from various sources. Just Bing it and they are there. Let's see if the any articles appear on Yahoo's page for NOK. I doubt it. They will keep posting nonsense articles that have nothing to do with NOK. Maybe I will be surprised and they actually post a relevant article.
Sentiment: Strong Buy
In Europe, TV's up to 40" are full outsourced with such model, from design to logistics, and are mostly built by two companies in Turkey; this includes products from famous Japanese and Korean brands. But they are still featured on the brand website including technical support. There is in a totally different market, a similar situation with glucose meters. Nokia pushed the ODM business model to a further limit.
Look for (from the Ecomonic Times): Lava may buy Nokia’s Chennai unit, will create jobs for thousands
We might finally see a resolution to the tax issue soon.
Excerpt from the article:
"Nokia has already communicated to Lava that the ongoing tax and lease-related issues are being discussed with the authorities concerned," said the person cited above. "It has asked Lava to continue with the assessment since there are high chances that these issues would get resolved soon."
Sentiment: Strong Buy
NEW DELHI: Fast-growing smartphone maker Lava is said to be in talks to buy Nokia's Chennai handset factory, once the world's biggest but now non-operational. If a deal is struck, that could raise the possibility of thousands of former workers getting a chance at re-employment at the plant that had been regarded as a showpiece of India's manufacturing capabilities.
The two companies have signed a nondisclosure agreement, people familiar with discussions told ET. "Lava's manufacturing team has already visited the plant and has done the assessment. It will make a proposal to Nokia mid-December after taking all aspects into consideration," one of the people said. "The tax issue needs to be sorted out before a final deal is sealed though."
He was referring to the tax dispute between Nokia and the government, which had prevented the Finnish company fr .. etc.
The Economic Times
It seems a win-win for Nokia, but I have a serious concern about after sale services. Even if Nokia makes sure that evey product with the Nokia name on it, is a very high quality device, with several companies licensing the Nokia brand after sale services will vary greatly and can kill the Nokia brand. Granted almost every company has horrible after sale services, but that doesn't mean that Nokia needs to follow suit.
My advice to Nokia is to have at a minimum a website with manuals, patches, drivers, utilities, forum for all the devices with the Nokia brandon them. It should not be too expensive, and will go a long way to provide some kind of consistency to the consumers.
Sentiment: Strong Buy
I already mentioned ARM, but that is in a much narrower field. Anybody any ideas about companies that do this with full blown product designs, not with components?
Are there any other examples of this business model out there?
Nokia’s surprise new tablet will come to Europe next year, a senior executive at the Finland-based vendor confirmed, and more devices might be on the way.
Kathrin Buvac, Nokia Networks’ VP of Corporate Strategy, told European Communications that the N1 will come to Europe after launching in China in early next year.
She did not specify which countries would be first to get the tablet, which was unveiled last week, but Russia is believed to be the next destination.
Buvac said: “[The N1] will launch in China then it will come to Europe. It’s a fantastic product.”
The exec said the Nokia brand is “still very strong” and the company wanted to keep it “out there and alive”. Buvac added: “To do that we wanted to do something in the consumer space and we needed to act fast.”
The launch followed the disappearance of the Nokia name from the devices business it sold to Microsoft last year.
Buvac refused to speculate on whether more devices would follow, but left the door open by adding: “Brand licensing is something we'd like to exploit going forward. We'll take our time but we're not commenting.”
She confirmed Foxconn is the manufacturer and said the company had learned lessons from the demise of its handset business, which led to the division's sale to Microsoft.
“What is important to understand from a business model perspective is that we provide our brand and the design criteria, but the manufacturing, sales, delivery, care and maintenance is with Foxconn. That is the key difference [with what we did before].
“We don’t see [the N1] like we are going to market with a product. We have no sales channel, no stores...it’s a totally different model so not comparable with what we did before.”
Thursday 27 November 2014 | 11:19 CET | News Share on twitterShare on facebookShare on linkedinShare on google_plusone_shareMore Sharing Services
Nokia Networks will provide its GSM-Railway (GSM-R) mobile infrastructure for the 110-kilometer route linking Poland’s capital of Warsaw with the central city of Lodz. The secure digital mobile infrastructure will increase safety and help reduce traveling time by enabling faster speeds.
The project is part of a modernisation plan of the national rail network, carried out by Poland’s rail network management, PKP Polskie Linie Kolejowe (PLK). Nokia’s Railway platform includes Flexi Base Stations and the Base Station Controller, European Train Control System (ETCS)** level 2 signaling integration into the GSM-R platform, services (network design, project management, network implementation, maintenance) and NetAct network management system to ensure network efficiency and stability.