Nokia might end its digital health business because of the fact that Nokia had some down years due to unnecessary business expansion. The company HMD Global is already facing fierce challenges as far as overall profitability is concerned, recently the company has faced increased losses in the business according to 2017 annual report.
In 2016, Nokia invested in French Digital health company Withings, today the company has announced that it is revisiting the strategic options for its Digital Health Unit. The Digital Health business is responsible for producing smart watches, scales and other digital health devices to consumers and partners.
However, review announcement by Nokia doesn’t necessarily mean selling the business out rightly, Nokia might sell the part of it or it may make strategic changes to the business but selling the business is one of the most common and possible outcomes of business review that is not been successful so far. In this condition, where Nokia is also investing heavily in 5G technology, the company is not in a position of being vulnerable to risks. Nokia has also canceled the OZO VR project due to slow growth in the market and demand.
So it can be said that Nokia is going to sell its Digital Health Business soon to put more focus on the projects like; New Future X Architecture and & ReefShark Chipsets for 5G technology.