Has Nokia had sufficient of the health tech global? Just two years after coming into the trade with its $190 million acquire of French corporate Withings, the corporate has introduced it’s launching a “strategic review of its digital health business.” A terse weblog publish mentioned the company was once taking into account its “strategic options” in terms of health care, and that this “may or may not result in any transaction or other changes.”
So, numerous transparent steering there.
What this implies precisely isn’t 100 p.c transparent, however opinions like this don’t occur when the whole thing is peachy. Nokia has had various difficulties with its Withings acquire, starting from product woes (together with backlash over its redesign of the Withings health app, and the withdrawal of experimental options from its good scales) to monetary troubles. Most considerably, it introduced a write-down of goodwill on the subject of the Withings acquire price €141 million ($164 million) final October, that means it had considerably overrated the worth of the corporate’s belongings.
Nokia’s undertaking gross sales are nonetheless robust, even though. Its multinational telecoms business makes up the majority of its annual income, price round €23 billion, and it has a deep bench of profitable era patents.
But discovering new income streams in shopper tech doesn’t appear to be running for the company. Just final 12 months it killed off its Ozo digital truth digicam undertaking, reducing 310 jobs within the procedure. News of this newest strategic evaluation was once accompanied by way of greater than 400 process losses. It turns out Nokia’s health business may well be at loss of life’s door.