Nokia’s Return to Making Cell Phones is Complicated

Since Nokia sold its devices business to Microsoft (Nasdaq: MSFT) two years ago, fans and analysts have been asking when the technology firm would return to making phones.

The Finnish maker of telecommunication devices, in eWeek, confirmed they would make devices again but that it was “complicated.” Robert Morlino, spokesman for the company said that “For 14 years Nokia was the biggest cell phone maker in the world, and the brand became a household name,” and this is why people ask when Nokia will return to making phones. He goes on to say that the company will make phones but not like it did when it led the market.

He explains that the company’s path will be through brand-licensing which means they need to identify “a partner that can be responsible” for manufacturing as well as “sales, marketing and customer support.”

In other words, Nokia would design the models and technology but another firm would manufacture and sell them under the Nokia name. In the past, the telecom giant made their own devices.

This is a smart tactical move since Microsoft bought the devices unit in 2013 for $7.2 billion. Microsoft also took the manufacturing, marketing and distribution divisions needed to sell the phones. So Nokia no longer has the infrastructure. Also, under the terms of the contract, Nokia cannot return to the phone market till the end of 2016. This means that Nokia will not be back anytime soon making phones.

At least before the fourth quarter of next year.