When speaking in terms of brand recognition and historical value, the name Nokia is right up there at the very top. But with Microsoft moving ahead with its acquisition of the Finnish company’s devices and services unit, a few rather interesting questions are raised.
One of these is what will happen to the brand name of Nokia after it becomes a Microsoft entity — in other words, its devices and services division comes under the Redmond umbrella.
The company will retain its core telecom business along with its automobile mapping solutions.
Anyway, Stephen Elop answered this question in an interview at the Nokia World 2013 event in Abu Dhabi earlier this week, and confirmed that the illustrious brand will be licensed to Microsoft for a period of ten years, at least for lower end phones:
“After the Nokia-Microsoft transaction, Nokia brand is going to be owned by Nokia company and not by Microsoft. For a period of 10 years, Nokia — as a brand name — will be licensed to Microsoft to use the brand name for Asha and other low-end phones.
For smartphones, this decision is yet to be made that what name, combination of names or brand name would be used for the smartphones after the transaction. This will be decided when both the companies will meet at a time set for that.”
Something similar may work yet work out for Lumia smartphones, as both companies complete their final negotiations ahead of shareholder approval next month.
In any case, Microsoft will stop using Nokia brand name after 10 years. A decade is a long, long time in the world of computing technology, and surely Microsoft (and its Windows Phone partners) will aim to consolidate their standing in the mobile arena well before that.