Nokia has revealed plans to change its brand identity for the first time in nearly 60 years as it aims to accelerate its growth in the business technology sector. The telecom equipment maker has developed a new logo consisting of five shapes that form the word NOKIA. The new logo will feature a range of colours instead of the iconic blue of the previous design.
Nokia CEO, Pekka Lundmark, told Reuters that the change in branding is intended to signal a new era for the company, reflecting its transition from being associated with smartphones to its current focus on business technology. Lundmark is looking to build on last year’s 21% growth in the enterprise sector, which currently represents approximately 8% of Nokia’s sales. The CEO’s goal is to double this figure in the shortest possible time.
The Finnish company has outlined a strategy that includes three stages: reset, accelerate and scale. With the reset stage now completed, Nokia will focus on accelerating its growth, targeting sales of gear to businesses. Major technology companies have partnered with telecom gear makers like Nokia to sell private 5G networks and gear for automated factories to customers, mostly in the manufacturing sector.
Nokia also plans to review the growth path of its different businesses and consider alternatives, including divestment. Lundmark has been clear that Nokia wants to be a global leader in all the businesses it operates in. The company’s move towards factory automation and data centres will put it in competition with big tech firms such as Microsoft and Amazon.
The market for selling telecom gear is facing pressure due to a challenging macro environment that has dented demand from high-margin markets like North America. However, Nokia’s fastest-growing market, India, is a low-margin market. Lundmark expects North America to strengthen in the second half of the year.
Nokia’s rebranding comes as the company prepares to deliver a business update ahead of the annual Mobile World Congress in Barcelona.