Microsoft is officially replacing its Nokia branding with Microsoft Lumia on the company’s Windows Phones. The software giant is "looking forward to unveiling a Microsoft Lumia device soon," and, as The Verge revealed earlier this week, Nokia’s existing phone websites and social network accounts will now be transitioned over to the Microsoft Lumia branding in the coming days. Microsoft has also revealed that it will use the company’s name on the front and rear of future Lumia devices in a simple replacement of the Nokia branding.
Nokia branding will continue on basic phones
While Lumia phones will drop the Nokia brand entirely, Microsoft still has a 10-year license to use the Nokia brand on basic phones. "Microsoft will continue to sell Nokia-branded, entry-level category of phones, such as the Nokia 130," explains Tuula Rytilä, Senior Vice President of Marketing for Phones at Microsoft. "We have licensed the Nokia brand for such devices." It’s not clear how many of these types of devices Microsoft will continue to focus on. Microsoft is killing off the majority of Nokia’s feature phones in favor of Windows Phone, with only the very basic mobile phones still likely to be produced in future.
Microsoft only had a temporary period of 18 months to use the Nokia brand on smartphones, providing the company enough time to switch to Microsoft Lumia. Microsoft revealed yesterday that the company sold 9.3 million Lumia Windows Phones in the most recent quarter, a small increase from the 8.8 million sold in the same period last year. While Windows Phone faces many challenges in the market against iOS and Android handsets, Microsoft may face a new challenge with its branding. Microsoft CEO Satya Nadella revealed yesterday that the modest growth in Lumia sales was "driven by sales in Europe where we gained share with lower price devices." Nokia has always been a strong brand in Europe, and it’s now down to Microsoft to prove it can continue to push Lumia sales forward without Nokia.