Nokia’s been facing an uphill battle for relevance in the consumer space ever since the company threw in the towel on smartphones. Wearables seemed like a reasonable road, so the company snapped up French electronics company
Of course, the past year has seen much of the air escape from wearables, and the company’s clearly feeling that pinch. In a statement today, Nokia admits that it’s doing some serious soul searching. The actual letter is brief and full of corporate speak, but it paints a company going through some serious growing pains.
“Nokia today announces that it has initiated a review of strategic options for its Digital Health business,” it
As far as what that actually means in the short term,
Once a global leader in mobile, the company failed to embrace the smartphone revolution, selling to Microsoft, which then shuttered the whole thing entirely. Of course, the Nokia name is back in the smartphone space, but that comes under a licensing deal through HMD — a company founded by former execs from the company. Interestingly, recent numbers show that the brand has actually been doing pretty well.
Wearables, on the other hand, have stagnated, forcing brands to exit the space, sell or shutter entirely. The herd has thinned over the past year, and even top names like Fitbit have struggled to keep their head above water. For Nokia, acquiring a company like Withings no doubt seemed like a quick way to hit the ground running — but the timing was rough on this one.
Hopefully this doesn’t mark the end of the Withings/Nokia Health line, which made some really solid and innovative devices.