On February 26, Nokia, the first-generation cell phone giant, unveiled a new corporate logo at the Mobile World Congress in Barcelona. The company’s classic blue and white logo, which has been used for more than 60 years, has been replaced with a colorful gradient design.
The logo change reflects Nokia’s desire to move beyond its reputation as a cell phone manufacturer and enter new, innovative markets. While many consumers still associate Nokia with phones, the company’s financial reports show that it is thriving. In fact, Nokia weathered the storm of the 2022 pandemic better than many other tech companies in 2022, with a 12.2% year-on-year increase in revenue to 24.911 billion euros, and a 161.86% increase in net profit to 4.259 billion euros.
Nokia’s Q4 2022 financial report showed impressive growth in key financial indicators, with operating profit reaching €7.449 billion, up 16% year-on-year, and net profit attributable to common shareholders reaching € 3.152 billion, up a staggering 364% year-on-year. In addition, the company reported significant year-on-year increases in gross profit margin, operating profit margin, comparable diluted earnings per share, net liquidity, and working capital.
Nokia’s success is due in part to its expansion beyond cell phones. By diversifying its offering, Nokia has positioned itself as a leader in the rapidly evolving technology industry. After Microsoft acquired most of Nokia’s cell phone business in 2013, Nokia shifted its focus to communications patents, technologies, and business services. Today, Nokia’s revenue comes primarily from three areas: Network Infrastructure, Mobile Networks, and Cloud and Network Services.
In 2020, Pekka Lundmark took the helm as CEO of Nokia and developed a three-phase strategy – “Reset,” “Accelerate” and “Scale” – with the goal of achieving sustainable, profitable growth by reshaping the company’s business model.
Despite Nokia’s impressive transformation efforts over the years, the company’s focus today is on its B2B business, which has limited consumer awareness due to low market volume in the cell phone industry.
The recent rebranding of the Nokia logo signifies the completion of the “Reset” phase, and according to Lundmark, the company is now entering the second phase of its strategy. It remains to be seen whether Nokia can continue to achieve profitable growth with this new “face.”