Finnish manufacturer Nokia (NASDAQ:NOK) has officially said that it has no plans to re-enter the smartphone market, contrary to earlier reports by popular technology website Re/Code that reported that the once Finnish giant is likely to jump back in the game.
Nokia has now come out in the open and is officially denying the reports and said in a statement, “Nokia notes recent news reports claiming the company communicated an intention to manufacture consumer handsets out of a R&D facility in China. These reports are false and include comments incorrectly attributed to a Nokia Networks executive. Nokia reiterates it currently has no plans to manufacture or sell consumer handsets.”
The above statement is quite precise and clear in its message. Moreover, after its deal with Microsoft, Nokia clearly said that it would not enter the smartphone business before the year 2016.
Meanwhile, an earlier report by Re/Code said that other OEM’s handle the marketing and manufacturing though they had to sell them under the Nokia banner.
The Re/Code report states that the Finnish company will follow a similar approach to return to the smartphone market. Essentially, Nokia will take care just designing the products while the other company will be entirely responsible for the manufacturing, sales and distribution of the products only under Nokia branding.
“It would be crazy not to look at that opportunity. Of course we will look at it,” Sebastian Nystrom, the head of products at Nokia’s Technologies unit, told Reuters in November.
In other related news, Nokia recently announced that it has agreed to buy French Telecom equipment maker Alcatel-Lucent (NASDAQ:ALU) for 15.6 billion euros, which is more than twice the amount Microsoft paid for its phone business. This puts Nokia as a direct rival with market leader Ericsson and Huawei as network equipment suppliers.