Nokia Digital Health

Digital Health Nokia is the division of Nokia which is engaged in development of digital products for needs of health care. The structure is included into the Technologies Nokia group which specializes in creation of consumer electronics and licensing of patents.

By the end of October, 2017 within Digital Health Nokia three products are offered: "smart" scales, thermometers and hours. These devices are created thanks to acquisition of the French company Withings making hi-tech medical devices.

2018: Nokia sold medical business

At the beginning of May, 2018 Nokia announced sale of medical business to Eric Carreel, cofounder and former chairman of the board of directors of Withings company which the Finnish producer of telecommunication equipment purchased in 2016 for 170 million euros. Afterwards Withings formed the basis of division of Digital Health Nokia.

It is going to close the transaction until the end of the second quarter 2018. The financial component and other terms of agreement do not reveal. Presumably, Nokia earned from sale of division on creation of medical devices less, than paid for purchase of Withings. In 2017 revenue of Digital Health Nokia made only 52 million euros whereas all company earned more than 23 billion euros. It is expected that the brand of Withings will return on the market.

Nokia will sell business on production of gadgets for control of health to its old owner

The planned sale became a part of the attention of Nokia concentrated on transformation into the company focused on work with corporate clients and licensing, said in the statement of Nokia.

According to the director of the strategy of Nokia Kathrin Buvac, Digital Health had problems with scaling of business and compliance to the expected growth. Therefore Nokia does not see in this business an opportunity any more "become a significant part of such big company as Nokia", she added.

In February, 2018 Nokia announced start of strategic business valuation in the field of digital medical technologies. This process as noted in the company, "can or cannot lead to any transaction or other changes". According to the French newspaper Le Monde, several companies, including Samsung and Google were interested in purchase of Digital Health.

During the existence the division of Digital Health Nokia released the Go Nokia fitness tracker, the Steel HR Nokia smartwatch and smart scales of Body Cardio Nokia.^[1]

2017

Blockchain project

In December, 2017  Nokia announced a blockchain project for transfer of medical data. The partner of the Finnish telecommunication giant from this project selects OP Financial Group company.

According to the message of Nokia, about 100 people participate in testing of development which will allow to learn how it is possible to store and share medical data, at the same time saving strict confidentiality.

Nokia and OP Financial Group addressed a blockchain because of high degree of protection which is offered by this technology. It allows to control access to the collected data and to provide only it to the checked participants.

Nokia announced a blockchain project for transfer of medical data

Though the value of the medical data connected to network is widely recognized, often its potential is not used fully because of the problems connected with authenticity, availability and confidentiality of data. The trust is vital the important requirement to that data on health were useful to individuals, families and society in general", said in the press release of Nokia.

The program which is developed by Nokia and OP Financial Group uses wearable devices for tracking of quantity of steps and time of a dream and saves this information in a blockchain system. The received results are compared to the fitness purposes of users. Those people who achieve effective objectives or significant progress in their achievement receive loyalty points depending on a type of their participation in a pilot project.

Nokia says that this program is capable to help with development of "understanding of global problems of health care" provided that users trust a system.

Serious intentions of Nokia on a blockchain were sounded after the entry of the company at the end of 2016 in  the consortium Hyperledger headed by the Linux Foundation organization.^[2]

Write-offs of 140 million euros

On October 27, 2017  Nokia  reported that the company continues to trust in the potential of the business in the field of digital health care even after write-off of losses from it in the third quarter.

According to the financial statement of Nokia, in July-September, 2017 the Finnish company is forced to write off about 144 million euros in view of decrease in goodwill (the cost of intangible assets, generally a goodwill, the customer base, a brand and qualification of personnel) the division which is engaged in digital health care.

Products Digital Health Nokia

Medical technologies — one of the markets in which Nokia sees opportunities for future growth reigns in the telecommunication industry stagnation so far. As the first step in the direction to the market, new to itself in 2016  Nokia  purchased the French  company Withings.

According to the representative of Nokia, the company performed write-off in Digital Health Nokia after updating of forecasts for this division.

Despite expenses, all of us are still sure of the potential of our business of medical technologies and we consider that we have assets, a brand and innovations which will help us to achieve success — said in the company.

Nokia does not open work indicators in the medical market. In the third quarter 2017 the division of Technologies Nokia to which this business belongs received revenue in the amount of 483 million euros that is 37% more, than the previous year. Operating profit increased by 73%, to 390 million euros.^[3]

2016: Nokia purchased Withings for 170 million euros

On April 26, 2016 the producer of telecommunication equipment Nokia announced acquisition of Withings for 170 million euros. Due to this purchase which will be paid with cash the Finnish company expects to strengthen positions in the market of Internet of Things (Internet of Things, IoT). Read more here.

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