Nokia is officially going to be ended as a smartphone brand. Microsoft has opted to rebrand both the Nokia devices, as well as their own Windows phone devices, into the merged “Microsoft Lumia” brand.
This comes after Microsoft acquired Nokia’s handset business for $7.2 billion, and reduced the company to their mapping and networking businesses, which are both promising. The rebranding though of the Nokia Lumia business specifically, marks significant changes that Microsoft is looking to achieve through this process.
However, with as significant as the move is, it also doesn’t come at much of a surprise. Earlier in the year former Nokia CEO Stephen Elop, who is now the executive vice president of Microsoft Devices Group pointed out that a change in name would be coming when the deal was formally completed, and the proper requirements were met.
More importantly though, this move is significant for two very different reasons. The move is significant for Microsoft because it allows them to stand uniquely, on their own, but also gives them the opportunity to ditch the Windows platform – which had previously not done as well as it possibly could have, if it had a clean – or new slate.
The move is significant for Nokia though, because they still are an operating company. When Nokia sold their handset business, they did not turn over their entire business. They simply sold a portion of the total portfolio, in an effort to shore up their business as a whole – and refocus the company.
Obviously, Microsoft couldn’t continue making devices under the Nokia name, and not have Nokia be primarily noted, or known for the devices – when they are carrying the device name. Now though, it’s unclear what kind of change we should expect to see in the raw product. We know rebranding is happening, and while that is a largely commercial move, Microsoft has made it clear in the last year that they’ve learned from previous mistakes and are looking to improve their standing within the industry.
The only way they’re going to do that is if they make physical changes to the way their system works in addition to the usual changes that are expected when it comes to rebranding. But, at this point, it is very clear that Microsoft has taken the lead on changing the image of the Nokia device.