The famous Nokia brand name is all set to be retired to pages of history books as the Microsoft takeover of the Mobility division of the Finish giants is all set to be signed and closed this month. According to the widespread reports such as this in Techradar, a letter has been sent out by the new owners of Nokia to the suppliers about the intentions. Right since the takeover was announced, in September last year, speculations have been rife about the future of Nokia as a brand name and this rechristening should not come as a surprise.
According to the letter sent out, Nokia Corporation/Nokia Oyj (Ltd) would be renamed to Microsoft Mobile Oy when the deal is finally completed. The letter exactly reads, “Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices”. However, the letter does stress upon the fact that despite the renaming, the terms of operations as well as the relationship with the suppliers would remain the same as Microsoft begins a new journey in the mobility space.
Stephen Elop, formerly the CEO of Nokia and now heading the Microsoft Mobility division has always been skeptical of the Nokia and Lumia brand names going down the lines of the future after the takeover was made official. So what does all this equate to? Apart from obvious remarketing efforts that Microsoft will have to make, the biggest factor would be would people take to the Microsoft Mobile as a brand name to trust. Say whatever you want about Nokia in the recent past, it has always been a brand in which people have trusted for countless years and there is a security of trust when you are picking a Nokia device. Microsoft has always been the name synonymous with the PC world and most of the consumers who took to Windows Phone took to it because of the Lumia and Nokia brand name, both of which are set to be killed. The next huge question will be the question of sellers and distributors. Nokia has always had a fantastic chain of retailers, service centers and distributors across developing markets like India, will this change with Microsoft now taking over the reigns? Although the letter does say that nothing apart from the name changes, these things can be painfully drawn out and difficult to predict.
Either way, Microsoft has a tough task on its hand to erase the Nokia brand and etch the Microsoft name in the minds and more importantly in the hearts of people, as consumers had an emotional bonding with the name. You would assume a huge spend on marketing would be used for the same, while focus on developing good products will be stronger than ever. The coming months, no doubt will have a huge say in the future of Microsoft as a pure mobility brand.