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techkenyot.com September 24, 2018


Nokia Announces Strategic Review Of Its Digital Health Unit

15 February 2018, 08:13 | Casey Mitchell

Image Credit Nokia

Image Credit Nokia

Despite the growth at the tech arm, Nokia saw overall revenues slide two percent to €23.15 billion a year ago on account of a continued slowdown at its main networks business.

In a brief statement, Nokia said it has initiated a strategic review of its Digital Health business, which is part of Nokia Technologies and that the review "may or may not result in any transaction or other changes". "The strategic review of the Digital Health business may or may not result in any transaction or other changes", the company said in its press release, which means that it's going to consider all options on the table so a sale is not necessary.

The former mobile phone giant set up its digital health unit in 2016 around the time it purchased the wearables firm Withings for $170 million.

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Last October, the Finland-based vendor revealed it was cutting one-third of the workforce at the Technologies business unit in light of slow sales of VR products.

Nokia says that it will provide more details about the review and its outcome at an appropriate time.

Despite a positive reception at the time, there were signs that things were not progressing so well late previous year after the firm made a decision to axe part of its virtual reality workforce.

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Back in 2016, Nokia announced it wanted to acquire French wearables and health company Withings.

The company's patent business, brand partnerships and technology licensing units in Nokia Technologies are not part of the review, Nokia added.

But it also wrote off the $164 million value of the digital health business, setting the value of the Withings acquisition at zero.

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