Tuesday 3 September 2013

Should Microsoft Rebrand Nokia Phones?

Now that Microsoft is buying Nokia's handset unit, what should it do about branding the phones?
Microsoft's involvement with Nokia began two years ago as a strategy to put Windows software on as many phones as possible while Apple and Android were growing ever stronger. Since then, Nokia--which once was a worldwide leader in mobiles--has lost market share, and Windows hasn't become as popular as Microsoft had hoped.

The new deal puts Nokia's mobiles under the Microsoft umbrella. Moreover, the Nokia brand will be licensed to Microsoft for the coming decade. Should Microsoft rebrand the mobiles it now owns as Windows or Microsoft? Or should it retain the Nokia brand for as long as possible, given the history and brand recognition (as well as positive perceptions)?

One analyst comments: 'The Nokia brand still has a high value to people. That doesn’t mean the Microsoft brand is not known - but what does it mean to people?'