Why Did Nokia Change To A New Logo After 60 Years?
Nokia’s new logo is attracting global attention as the company has changed its brand identity for the first in 60 years. But why did Nokia change its logo?
The telecom equipment manufacturer Nokia announced intentions to modernize its brand recognition for the first in almost 60 years on Sunday, along with a new logo.
The word Nokia is represented by five different shapes in the new logo. Depending on the purpose, the previous logo’s signature blue color has been replaced with a variety of colors.
According to Chief Executive Pekka Lundmark, “There was an association with cell phones and today we are a business technology company.”
He was speaking on the occasion of the annual Mobile World Congress (MWC), which starts in Barcelona on Monday and lasts through March 2. He was speaking before the company’s business update.
Lundmark devised a three-stage strategy in 2020 after assuming leadership of the faltering Finnish business. The stages were reset, accelerated, and scale. Lundmark stated that the second stage has started now that the reset stage is over.
Nokia’s primary focus is now on selling equipment to other firms, though it still hopes to expand its service provider sector, where it supplies equipment to telecom companies.
According to Lundmark, “We achieved really good 21% growth in enterprise last year, which is presently about 8% of our revenues, (or) 2 billion euros ($2.11 billion) roughly.” We want to increase that to double digits as soon as we can.
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 evaluate the development of each of its companies and explore all available options, including divestiture.
“The signal is quite clear. We only desire positions in companies where we can observe global leadership, “said Lundmark.
Nokia will be competing against major tech firms like Microsoft and Amazon as they move towards data centers and factory automation.
There will be many various kinds of cases; occasionally they will be our partners, occasionally they might be our clients, and I’m sure there will also be circumstances where they will be rivals.
With development in low-margin India replacing demand from high-margin areas like North America, the market for telecom equipment is under strain, forcing competitor Ericsson to lay off 8,500 workers.
According to Lundmark, Nokia expects North America to do better in the second half of the year. “India is our fastest growing market with lower margins – this is a fundamental change,” he added.