Nokia has initiated a review of strategic options for its Digital Health business, which is part of Nokia Technologies, the company has announced.
Digital Health's business portfolio includes consumer and enterprise products, and it manufactures and sells an ecosystem of hybrid smart watches, scales and digital health devices to consumers and enterprise partners.
Nokia also pointed out that this strategic review may or may not result in any transaction or other changes. Any further announcements about the Digital Health business will be made if and when appropriate. The Patent Business, Brand Partnerships and Technology Licensing units in Nokia Technologies are not in the scope of this review.
In other words, if bankers are asked — and I'm sure a few of them are involved in this strategic review — Nokia will end-up selling the division to an interested party.
It is somewhat strange considering that it was only a year and a half ago when Nokia announced the acquisition of Withings which was effectively turned into the Nokia Digital Health division. Later on, Nokia completed Withings rebranding and unveiled the first Nokia-branded digital health devices. The latest such device, Nokia Sleep, was announced at this year's CES.
In the meantime, the company has teamed-up with HUS/Helsinki University Hospital and University of Helsinki, Faculty of Medicine to create solutions for outpatient care and to foster mutual research and development.
So what will happen with Nokia Digital Health? Perhaps they sell the device making business which is being pressured by increasingly falling margins, and end-up with a software-only offering. We don't know, and for the time being, your guess is good as ours.