Menu
Nokia sheds digital health venture as executive departs

Nokia sheds digital health venture as executive departs

Digital health was one of the areas vendor had been counting on for future growth opportunities

Nokia has sold its small digital health business, including activity trackers and smartwatches, and the executive who wound down the company's consumer ventures will leave Nokia after less than a year in the job.

Digital health was one of the areas the Finnish company had been counting on for future growth opportunities amid a tough market for its mainstay telecom network equipment business.

But Gregory Lee, a former Samsung executive who took the helm of Nokia's Technologies unit last year, pulled Nokia away from the business as well as a virtual camera venture, leaving the unit to focus on patent and brand licensing.

The health business was sold to Eric Carreel, co-founder and former chairman of the operation, for an undisclosed price. Nokia had announced plans to sell the business earlier this month.

"Gregory came to Nokia... and took the bold decision to refocus Nokia Technologies on licensing... We have agreed that his work at Nokia is done," Nokia CEO Rajeev Suri said in a statement.

Nokia chief legal officer Maria Varsellona will take over the Technologies unit, Nokia said.

The licensing business, highly profitable, includes royalties from handset vendors for the use of Nokia's brand and smartphone patents.

As an initial move into the health market, Nokia in 2016 bought France's Withings for 170 million euros (US$199 million). An internal memo from February showed that the business failed to meet Nokia's growth expectations.

Nokia has not given exact sales figures for the business, but digital health and virtual camera products in total generated 52 million euros of sales last year, compared to Nokia's total revenue of 23.2 billion euros.

(Reporting by Jussi Rosendahl; Editing by Edmund Blair and Susan Fenton)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Nokia

Featured

Slideshows

Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments