Nokia changes its brand identity to Nokia

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Nokia changes its brand identity to Nokia

New Nokia's logo is displayed before the GSMA's 2023 start at the Mobile World Congress MWC in Barcelona, Spain, February 26, 2023. Nokia has announced plans to change its brand identity for the first time in nearly 60 years, complete with a new logo, as the telecom equipment maker focuses on aggressive growth.

The word NOKIA is made up of five different shapes. The iconic blue color of the old logo has been dropped for a variety of colors depending on the use.

The association to smartphones was a trend, and now we are a business technology company," Pekka Lundmark, Chief Executive, told Reuters in an interview.

After taking over the top job at the struggling Finnish company in 2020, Lundmark set out a strategy with three stages: reset, accelerate and scale. The second stage is beginning with the reset stage now complete, according to Lundmark.

READ MORE: Samsung's newest Galaxy S is a test of brand power in a weak market.

Nokia is aiming to grow its service provider business, where it sells equipment to telecom companies, but its main focus is now to sell gear to other businesses.

A mockup of the new Nokia logo is seen in this handout image released on February 26, 2023. The PHOTO We had very good 21 percent growth last year in enterprise, which is currently about 8 percent of our sales, or 2 billion euros $2.11 billion roughly, according to Lundmark. We want to take that to double digits as quickly as possible. Several tech firms have been partnering with telecom gear makers such as Nokia to sell private 5 G networks and gears for automated factories to customers, mostly in the manufacturing sector.

Nokia plans to look at the growth path of its different businesses and consider options, including a divestment.

The signal is very clear. Lundmark said we only want to be in businesses where we can see global leadership.

Nokia is moving toward factory automation and data centers, which will see them lockhorns with big tech companies, such as Microsoft and Amazon.

There will be multiple different kinds of cases, sometimes they will be our partners, sometimes they can be our customers. There will also be situations where they will be competitors, and I am sure that they will be there. The market to sell telecom gear is under pressure due to the macro environment that has eroded demand from high-margin markets such as North America, which has been replaced by growth in low-margin India, pushing rival Ericsson to lay off 8,500 employees.

India is the fastest growing market with less margins, and this is a structural change, Lundmark said, adding that Nokia expects North America to be stronger in the second half of the year.