Many manufacturing businesses have failed because of unnecessary expansion to non-profitable production areas which subsequently takes up a lot of funds but yields little or nothing. Nokia just survived some trying years and the company is now careful with its expansions. In 2016, Nokia purchased French digital health company, Withings, and today, the company announced that it is reviewing the strategic options for its Digital Health business. This division of the company is responsible for the production and sales of an ecosystem of hybrid smart watches, scales and digital health devices to consumers and enterprise partners. This review may not necessarily make a change to the current status of the business. However, a review simply means that Nokia isn’t really sure of what it should do with the business and an outright sale is possible.
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Nokia may not want to lose its Digital Health division but businesses are usually vulnerable to risks and uncertainties and Nokia may not have the capacity to take a huge risk right now. Recall that Nokia canceled the OZO VR project because the market development was slow thus if this review reveals that Nokia will be taking a high risk with the business, it w=may likely dump it. In all, the Patent Business, Brand Partnerships and Technology Licensing units in Nokia Technologies “are not in the scope of this review”.
