Nokia yesterday announced that it will cut short 10,000 jobs worldwide to prevent the company from going into loss. The Finnish smart phone giant also announced a few more major changes that the company will undergo in the coming weeks. One of those major changes is the acquisition of the imaging firm Scalado. You might have heard the name before, this is because Scalado is a very well known name in the world of smart phone imaging. The company’s technology have been used on many smart phones, including Nokia.
Nokia and Scalado have a business relationship which dates back to more than ten years. And now, Nokia wants to make Scalado a part of the company itself. Håkan Persson, chief executive officer of Scalado AB commented:
This is a great opportunity for many of our people to show their leadership in imaging and to continue to build its future…
Doing this as part of Nokia, already a leader in mobile imaging, will reinforce the strength of the technologies and competences developed at Scalado. We are very excited about this opportunity, which is a natural next step in our longstanding relationship with Nokia.
While Jo Harlow, EVP, Smart Devices at Nokia, said:
Nokia has been working with Scalado for more than ten years and they’ve contributed to many of our leading imaging applications. This transaction would enable us to combine our leadership in camera devices with their expertise in imaging, helping people move beyond taking pictures to capturing moments and emotions and then reliving them in many different ways.
The next obvious question is, how will this acquisition benefit Nokia? The answer is pretty simple. Even though all the patents and the licensing agreements will stay in place, all the future developments from Scalado are going to be exclusive to Nokia only. This will give the Finnish smart phone manufacturer an upper hand in smart phone imaging compared to other manufacturers. This in turn can boost sales.