Nokia has announced its first brand-licenced product; the N1 Android tablet.
The product will be released in stores in the first quarter of 2015 through a brand-licensing agreement with an original equipment manufacturer (OEM) partner who Nokia confirmed would be responsible for manufacturing, distribution and sales.
The OEM partner, who was not revealed by Nokia, is also responsible for full business execution, from engineering and sales to customer care, including liabilities and warranty costs, inbound IP and software licensing and contractual agreements with 3rd parties.
The manufacturer said that the N1 was planned to be available for purchase in China in Q1 2015 for an estimated $249 before tax, with the anticipation of expanding sales to other markets.
Commenting on the news Ian Fogg, director of mobile analysis at IHS Technology said: ‘For Nokia, the advantages of licensing are considerable. Nokia can enter the mobile device market without needing to worry about manufacturing, supply chain management, stock control or hardware distribution. And, by selling its former devices unit to Microsoft, Nokia has freed itself from historic baggage, restructuring costs, and can start afresh.
‘The choice of customers for Nokia's licensing is the biggest risk with Nokia's strategy. It will need to strike a balance between how best to maximize the commercial return for Nokia and ensuring the products meet the quality standards Nokia wishes to set.’