Nokia Updates Brand Identity And Focuss On Technology Business Growth

Nokia's new logo emerged after 60 years. (photo: twitter @nokia)

JAKARTA - Nokia announced plans to change its brand identity for the first time in nearly 60 years, complete with a new logo. This is because the Finnish telecommunications equipment manufacturer wants to focus on aggressive growth.

This new logo consists of five forms that form the word NOKIA. The iconic blue color of the old logo has been replaced with a number of colors depending on its use.

"There are associations with smartphones and we are currently a business technology company," Pekka Lundmark said in an interview with Reuters.

He spoke before a business update by the company on the opening night of the annual Mobile World Congress (MWC) which was held at Barcelona on Monday, February 27 and lasted until March 2.

This is Nokia, but not as the world has seen us before. Our new brand signals who Nokia is today. We’re unleashing the exponential potential of networks and their power to help reshape the way we all live and work. https://t.co/lbKLfaL2OI #NewNokia pic.twitter.com/VAgVo8p6nG

— Nokia #MWC23 (@nokia) February 26, 2023

After taking over the top spot in a struggling Finnish company in 2020, Lundmark laid out a strategy with three stages: reset, acceleration, and scale. Once the reset stage is now complete, Lundmark says the second phase is starting.

While Nokia still wants to develop a service provider business, where he sells equipment to telecommunications companies, now his main focus now is on selling equipment to other companies.

"We had excellent 21% growth last year in the field of enterpris, which is currently around 8% of our sales, or about 2 billion euros (IDR 32.2 trillion)," Lundmark said. "We want to take that to double digits as soon as possible."

Big tech companies have partnered with telecommunications equipment manufacturers such as Nokia to sell private 5G networks and equipment for automated factories to customers, especially in the manufacturing sector.

Nokia plans to review the growth path of its different business and consider alternatives, including release.

"The signal is very clear. We just want to be in a business where we can see global leadership," said Lundmark.

Nokia's move towards factory automation and data centers will also see them compete with big tech companies, such as Microsoft and Amazon.

"There will definitely be some kind of cases, sometimes they will be our partners... sometimes they can be our customers... and I am sure that there will be situations where they will be competitors," added Lundmark.

The sales market for telecommunications equipment is under pressure with a macro environment that reduces demand from high-margin markets such as North America, which was replaced by growth in India with low margins, prompting rival Ericsson to lay off 8,500 employees.

"India is our fastest market to have a lower margin - this is a structural change," Lundmark said. He added that Nokia expects North America to be stronger in the second half of this year.