It was revealed today that Microsoft will keep using Nokia brand for their non-flagship and entry-level phones, even though Nokia has now been incorporated by Microsoft.
In April of this year, Microsoft bought Nokia which for $7 billion which added around $2.6 billion in phone revenue to Microsoft’s pocket.
Late last night it was announced by the Vice President of Marketing for phones at Microsoft, Tulla Rytila, that the company was preparing to release the new Microsoft Lumia brand, which used to be called Nokia Lumia.
Our global and local websites are going through a transition as we speak and in the coming days our social channels will get a new name too—they will be called Microsoft Lumia. This work continues across our devices, packaging and retail, to name a few.
The first time the news broke about Nokia Lumia becoming Microsoft Lumia was on Nokia France’s Facebook page.
Microsoft is not planning to put its name on all the Nokia phones, it will only do so for flagship smartphones. Microsoft will keep using Nokia brand for non-flagship phones, such as the Nokia 130, which is immensely popular, even if it does not have any apps or Internet connecting capabilities.
Tulla Rytila revealed that Microsoft is looking forward to revealing the new Microsoft Lumia smartphone soon, although it didn’t give any specific date when this event would take place. The VP also said that the change in brand is simply a natural progression.
It is believed that the reason Microsoft will keep using Nokia brand for some phones could be that Nokia resonates with the low-end market of the phone users. Someone who is using a simple phone, not a smartphone, will not be happy about the name change; they could even be confused.
Microsoft hasn’t revealed the exact reasons why Microsoft will keep using Nokia brand for some of their phones.
Microsoft Corporation reported quarterly revenue that is higher than expected. It’s because Microsoft has experienced a boost in phone sales, created by the acquisition of Nokia in April.