Business Mobile

Nokia will sell its business of modems without cable, in their process of getting rid of some divisions that are not part of its core business to be able to focus on its key section of telephony, which is accusing the pressure from rivals such as Apple. Nokia, the leading manufacturer of mobile phones in the world, announced on Tuesday 06 July, 2010 the sale of its mobile modems section Japanese Renesas Electronics by 200 million dollars (135 million euros), and that both companies will form an Alliance to develop modem technologies. The Finnish company issued a warning in profits decrease in June, the second in less than two months, and it is finding problems to compete against Apple’s iPhone. Analysts noted Tuesday that the decision by Nokia to outsource research and development in sectors apart from its core business remains the intention of the above measures, taken to outsource the development of components. It is very logical that this is outsourced, they should have done it long ago, because it has not actually been key. And I think that they can perform more agreements of this kind, commented the analyst of Handelsbanken Capital Markets Martin Nilsson. For its part, the analyst for Pohjola Bank Hannu Rauhala noted: somehow, this will decrease the costs of research and development of Nokia. Renesas Electronics, the fifth largest manufacturer of processors in the world, pointed out that the agreement will allow you to offer a mobile platform that works with various types of portable standards and will help you to become one of the strongest markets for 3 G and LTE networks chip manufacturers. Business to be transferred to Renesas Electronics includes the technologies of mobile modem of Nokia for LTE, HSPA and GSM standards, as well as several patents, Nokia said on Tuesday.

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