Nokia’s formidable try and reinvent itself continued to unravel at this time when the corporate introduced it had “initiated a evaluate of strategic choices for its Digital Health enterprise.”
In a brief assertion, Nokia stated:
“The strategic evaluate of the Digital Health enterprise could or could not end in any transaction or different modifications. Any additional bulletins concerning the Digital Health enterprise shall be made if and when applicable.”
The transfer is a shocking twist, coming lower than two years after Nokia paid $192 million to amass France’s Withings to be able to basically launch itself into the digital well being enterprise. Withings was identified for its vary of related well being merchandise, together with watches, health bands, sleep-trackers, thermometers, and scales.
Withings CEO and cofounder Cédric Hutchings turned vp of Digital Health at Nokia. In a June 2016 interview, Hutchings stated he was thrilled concerning the potential alternatives that will include being a part of Nokia.
“We have an enormous ambition,” Hutchings stated. “Nokia Tech is actually a brand new firm. And it’s in a really robust place to be seeding and constructing new companies at Nokia.”
Withings was tucked inside a gaggle known as Nokia Technologies, a form of startup hub based mostly in Silicon Valley that existed throughout the broader Finland-based Nokia company. Nokia Technologies was assigned 30,000 Nokia patents that generate $800 million in annual income for the unit. It additionally had 800 staff, largely engineers.
The thought was to take these patents, the income, and the crew of engineers and begin exploring new product classes for the corporate. One of the primary initiatives was creating a Digital Media enterprise whose product was the Ozo digital actuality digital camera. The second was Digital Health, which was jumpstarted with the Withings acquisition.
Nokia had employed Ramzi Haidamus away from Dolby Laboratories to run Nokia Technologies. But in August 2016 Nokia introduced that Haidamus was leaving, although the corporate supplied little data as to why.
Last fall, Nokia introduced it was closing down the Ozo enterprise and shedding 310 folks. At the identical time, it additionally took a write-down of $164 million on its digital well being enterprise, basically setting the worth of its Withings acquisition at zero, in keeping with Reuters.
“The cost was taken as we up to date our projections for the enterprise,” a Nokia spokesman advised Reuters on the time. “Despite the cost, we stay assured within the potential of our digital well being enterprise, and consider we’ve the belongings, the model and the innovation capabilities to succeed.”
Apparently, not so anymore because it seems digital well being is subsequent on the chopping block.
In a press release, Nokia emphasised that it wasn’t contemplating parting with its profitable patent enterprise. But as the corporate considers its choices for digital well being, the way forward for the Nokia Technologies experiment appears unsure at finest.
This article sources data from VentureBeat