By Juhana Rossi
HELSINKI--Finland's Nokia Corp. (NOK) Sunday squashed rumors
that it was planning a return to mobile-device manufacturing, which
it exited last year by selling its once-dominant handset business
to Microsoft Corp. (MSFT).
In a statement posted on its website, Nokia noted news reports
claiming the company was planning to start manufacturing consumer
handsets from a research-and-development facility in China.
"These reports are false," Nokia said, adding that the company
"currently has no plans to manufacture or sell consumer
handsets."
Nokia is now primarily a telecom-network equipment supplier
after it sold its unprofitable handset unit to Microsoft in a deal
announced in September 2013.
The company's strong brand in the mobile space has kept alive
rumors and speculation that it could eventually return to making
consumer mobile devices.
In an attempt to test its appeal in today's consumer market,
Nokia licensed its brand on a tablet computer that was launched in
China early this year.
The tablet runs on Google Inc.'s (GOOG) Android operating
software, and it is engineered, manufactured and distributed by
Foxconn, known formally as Hon Hai Precision Industry Co.
(2317.TW), under a licensing agreement.
Nokia could do more similar deals starting late 2016 when it can
start using its brand name without restrictions set in its
transaction contract with Microsoft, Nokia Chief Executive Rajeev
Suri told The Wall Street Journal earlier this week.
"We have a very credible brand that's known everywhere in the
world. Why not monetize it again in a sensible way?" Mr. Suri
said.
Mr. Suri added that any licensing agreements involving more
advanced technology would still be years away from now.
To strengthen its position in the wireless infrastructure
industry, Nokia earlier this month launched a bid to acquire its
French rival Alcatel-Lucent (ALU) in a deal valued at 15.6 billion
euros ($17.0 billion).
--Drew FitzGerald contributed to this article.
Write to Juhana Rossi at juhana.rossi@wsj.com
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