Nokia Corp Increases Focus on Mapping Service ‘Here’ after Selling Handset Unit
Nokia Corp is increasing its focus into its mapping service called ‘Here.’ This is a logical and timely move as the Finnish company taps its remaining income sources. The handset and technology firm has sold its mobile unit to Microsoft Corp last month.
Not surprisingly, Nokia aims to integrate here digital mapping service into more third-party handsets, modern vehicles, and other businesses that require maps for tracking people and products. It aims to provide useful maps to companies that currently lack a mapping service. This way, it could become a neutral, third-party service provider to consumers and fellow companies.
The company seems to focus its resources into wise and productive venues. There is presently a continuously rising demand for digital location and mapping technology. In fact, the two biggest technology firms, Google Inc and Apple Inc, are already spending time and effort on that.
Here mapping service
Nokia’s Here mapping unit has already mapped over 190 nations worldwide. To date, it even offers updated traffic information in up to 34 of those countries. Logically, it competes with giants Google and Apple in providing navigation and map services on devices.
After the transaction with Microsoft, Nokia could be sure Here would continue to benefit from that. The mapping service would continuously receive license fees from the software giant in the next four years. Here’s maps are currently utilized not just in Microsoft’s online sites but also in its Windows Phones.
The business has always been promising to Nokia. Here was the sole business of the company that posted rising sales in 2012. That year, Here contributed just 4% to Nokia’s total sales, while its former handset unit accounted for 51% and its network solutions was cited for 45% of sales. This year, the mapping service is expected to account for greater contributions to Nokia’s revenue.
Life after divestment of handset
The mapping service is one of the company’s three units that it keeps following its divestiture of its handset business for $7 billion in September. Its two other remaining operations are advanced technologies and network solutions businesses.
Fortunately, a past investment of Nokia is getting more useful to it nowadays. In 2008, during its heydays, it invested $8.1 billion to acquire Navteq. That acquisition provides the digital map data used in Global Positioning System in various navigation devices as well as online services.