After 60 years, Nokia shakes things up with a new logo at MWC 2023

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After 60 years, Nokia shakes things up with a new logo at MWC 2023 (Image: @nokia/Twitter)
After 60 years, Nokia shakes things up with a new logo at MWC 2023 (Image: @nokia/Twitter)

Delhi : The telecom equipment manufacturer Nokia announced intentions to alter its brand identity for the first time in nearly 60 years on Sunday, along with a new logo. Five diverse forms combine to form the word NOKIA in the new logo. Depending on the application, a variety of colours have replaced the characteristic blue of the previous logo.

Pekka Lundmark, the company's chief executive, told that "there was the association to cellphones and today we are a commercial technology company."

He was speaking on the eve of the annual Mobile World Congress (MWC), which starts in Barcelona on Monday and lasts through March 2. He was speaking before to the company's business update. Lundmark devised a three-stage approach with the words "reset," "accelerate," and "scale" after assuming leadership of the faltering Finnish corporation in 2020. Lundmark said that the second stage had begun after the reset stage was finished.

Nokia still wants to expand its service provider business, where it sells equipment to telecom providers, but its current primary objective is to sell equipment to other enterprises. "We achieved very good 21% growth in enterprise last year, which is now about 8% of our revenues, (or) 2 billion euros ($2.11 billion) roughly," Lundmark added. As soon as we can, we want to increase that to double digits.

The majority of their customers are in the manufacturing sector, thus major technology companies have started collaborating with telecom equipment manufacturers like Nokia to provide private 5G networks and equipment for automated factories to them.

Nokia intends to examine the growth trajectory of each of its businesses and weigh its options, including divesting. "There is a strong signal. We only want to work for companies where we can see international leadership "Added Lundmark.

Nokia's push into factory automation and datacenters will pit them against big tech companies like Microsoft and Amazon.

"There will be a variety of cases; sometimes they will be our partners, sometimes they will be our customers, and I am confident that there will be instances where they will be competitors." The telecom equipment market is under pressure, with demand from high-margin markets such as North America being replaced by growth in low-margin India, prompting rival Ericsson to lay off 8,500 workers.

"India is our fastest growing market with lower margins - this is a structural change," Lundmark explained, adding that Nokia anticipates a stronger second half of the year in North America.