Nokia unveils new logo in strategic shift towards aggressive growth

Telecom equipment manufacturer Nokia has announced its plans to undergo a brand identity overhaul for the first time in nearly six decades, as it looks to pursue aggressive growth. The company's new logo features five different shapes forming the word NOKIA, with a range of colours replacing the iconic blue hue of the old logo. 

CEO Pekka Lundmark unveiled the new design ahead of a business update on the eve of the annual Mobile World Congress in Barcelona. "There was the association to smartphones and nowadays we are a business technology company," Lundmark told Reuters in an interview.

After taking over as CEO of the struggling Finnish company in 2020, Lundmark established a three-stage strategy consisting of resetting, accelerating, and scaling. With the reset phase now completed, Lundmark has shifted the company's focus to selling gear to other businesses, although it still aims to expand its service provider business.

"We had very good 21% growth last year in enterprise, which is currently about 8% of our sales, (or) 2 billion euros ($2.11 billion) roughly," Lundmark said. "We want to take that to double digits as quickly as possible."

Nokia's move into factory automation and data centres will put it in direct competition with big tech firms like Microsoft and Amazon. 

"There will be multiple different types of cases, sometimes they will be our partners ... sometimes they can be our customers... and I am sure that there will also be situations where they will be competitors," Lundmark said.

The telecom gear market is facing pressure due to a difficult macro environment, with high-margin markets such as North America being replaced by low-margin regions like India, resulting in Ericsson laying off 8,500 employees. Nokia is planning to review the growth path of its different businesses, including the possibility of divestment.

(With Agency inputs)

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