Nokia announced recently that it has closed the sale of its digital health devices and services unit with Withings that has expressed interest in purchasing the business. The financial terms are yet to be revealed by the companies. For several weeks, Nokia has held closed discussion with Withings as the company tries to refocus its energy on its core business other than the unprofitable ones.
In 2016, Nokia acquired the unit from Withings for €170 million and branded it as Nokia Digital Health. Today, Withings’ former chairman and co-founder is delighted to re-launch the business back under the company brand name to offer preventive health services.
Change of Focus
Withings is currently focused on manufacturing smart tracking watches, blood pressure monitors, smart thermometers, sleep tracking pad and other useful healthcare products. The firm intends to becoming the leading company in the preventive health sector to help the world concentrate on preventive measures rather than curing the already established medical conditions.
Withings have vowed to refocus its efforts on developing core tools that can diagnose and prevent chronic health conditions. The company will adopt the current technologies to come up with solutions that can potentially benefit millions of patients across the world and its ambition is to ensure that it leads the industry with provision of technological advances and other intuitive designs.
Nokia Facing Challenges
Apart from selling part of its entities, Nokia is also reshuffling its management team to cut down operating costs. Recently, Maria Varsellona who was the Chief Legal Officer has been appointed the next president of Nokia Technologies as Gregory Lee leaves the company.
With the rapid growth and development of technologies and innovative products, most companies such as Nokia are facing serious challenges on how to balance between finding the best economies of scale in the supply chains and finding and retaining customers. The rise of Artificial Intelligence (AI) and other industry developments have improved the way the data is collected and managed. More so, firms are increasingly focusing on niche products and markets.
Meanwhile, Nokia is currently determined to update its Nokia-branded budget smartphones that are more pocket friendly to the users. Last year, the company launched Nokia 5 and has now updated it to Nokia 5.1, which has additional features.
The company is also upgrading its Nokia 3 and Nokia 2 to Nokia 3.1 and Nokia 2.1 respectively. The three newly updated Nokia phones will aim targeting middle class end of the market at an affordable rate of as low as $115.