HMD PULLS OUT FROM THE FLAGSHIP RACE
HMD Global Oy, which is a brand of HMD and Nokia Mobile,
It is a Finnish mobile phone manufacturer.
HMD deal in mobile phone business that Nokia sold to Microsoft in 2014,
then bought back in 2016.
HMD began marketing Nokia-branded smartphones and feature phones on 1 December 2016.
They had exclusive rights to the Nokia brand for mobile phones through a licensing agreement.
The HMD brand is only used for corporate purposes and does not appear in advertising,whereas the name “Nokia Mobile” is used on social media.
HMD has a partnership with Google, and uses the Android operating system under the Android One program on their smartphones, whereas HMD’s feature phones use the Series 30+ platform, or most recently, the Firefox OS-derived KaiOS.
The headquarter of HMD is Espoo, in Finland,
and is ran by former Nokia executives.
The first CEO was Arto Nummela, a Nokia veteran of 17 years, until July 2017,
when company president Florian Seiche took over as CEO.
Manufacturing is outsourced to Foxconn subsidiary FIH Mobile.
Nokia has investment in HMD, and remains a partner, setting mandatory requirements and providing patents and technologies, in return for royalty payments.
HMD uses a marketing strategy advertising Nokia phones as “pure, secure and up to date”
(referring to a stock Android interface and its commitment to fast updates) as well as brand trust and nostalgia.
The Full meaning of HMD is Hello Mobile Device
History on Nokia
Nokia was a leading global mobile phone and smartphone maker until it began to struggle in maintaining market leadership due to the rise of more innovative smartphone offerings from Apple, Samsung and Google.
Due to various factors, including the shift in the mobile market to smartphones,
and the poor choice of mobile operating systems, Nokia was unable to maintain the popularity it once had back in the 2000s.
Their partnership with Microsoft to use its operating system did not work,
Its initial partnership with Microsoft,
to use its operating system did not help either as Windows Phone’s mobile app offerings were not as comprehensive as the ones available on Apple’s iOS and Google’s Android.
At this point,
Nokia had a lineup of feature phones,
and a range of low- to high-end smartphones under the Nokia Lumia and Nokia Asha product lines.
By the early 2010s, Nokia had lost major market share in the mobile phone market, and was officially overtaken by Apple and Samsung, respectively.
In 2014, Microsoft bought Nokia mobile phone business,
However, further increased since the brand was primarily used on the part of Microsoft as a means to
introduce its Windows Phone mobile operating system, which was itself struggling to establish any kind of significant market presence.
The range of Nokia Lumia smartphones did not gain significant traction in the highly competitive smartphone industry dominated by Android and iOS devices.
There were further internal struggles,
as Microsoft tried to reconcile the Nokia brand with its own objectives under Microsoft Mobile.
By October 2014,
Microsoft decided to drop the Nokia brand in favour of its Microsoft-branded Lumia smartphone range with the release of Microsoft Lumia 535, while only the feature phone segment kept the Nokia brand.
How Nokia Came back
The CEO of Nokia, Rajeev Suri, said in June 2015 that the Nokia brand would return to smartphones.
Earlier that year Nokia Technologies released the N1 tablet running Android.
Under the terms of the acceptance agreement with Microsoft, Nokia could not sell Nokia-branded phones until 31 December 2015.
Suri”said in February 2016,
that he wanted the company to be in a position,
where it co-designs with another manufacturer,
but keeps “suitable control.
HMD Global Oy,
Was originally combined in Helsinki on 9 November 2015.
On 18 May 2016, Microsoft Mobile announced the sale of its feature phone business to HMD Global and FIH Mobile.
The sale included design rights, and its rights to use Nokia brand on all types of mobile phones and tablets worldwide until 2024,
Except in Japan, where Nokia mobile phones have not been sold.
HMD also signed a licensing agreement with Nokia Corporation which included giving it use of cellular standard essential patent licenses.
Nokia has said this move is “uniting one of the world’s iconic mobile brands with the leading mobile operating system”.
Some factories of Microsoft Mobile,
including one located in Vietnam,
had been sold to FIH Mobile, a subsidiary of Taiwan-based Foxconn, the world’s largest electronics manufacturer.
HMD PULLS OUT FROM THE FLAGSHIP RACE
HMD Global, the home of Nokia phones, lay down itself by trying to launch phones in all price angle, so it made the tough choice of pull out of the flagship race.
“Making an $800 phone doesn’t make sense for us at the moment,” Adam Ferguson, HMD’s Global Head of Product Marketing, told Android Authority in an interview.
The Nokia 9 PureView launched in 2019 and it was an attempt to return the brand to the premium camera phone market that it once ruled.
Unfortunately, the new PureView was not received well and rumors of a chain were always followed up with new rumors of delays. No Nokia flagship has come since the PureView and none is coming in the foreseeable future.
HMD will focus on its core business for now – entry-level and mid-range smartphones as well as feature phones.
They want Nokia phones to last several years, and have multi-day battery life and come with an affordable price tag.
The new strategy has been of help, the company recently celebrated its first full year of operational profit.
In fact, it has been profitable since Q3 2021 and Q4 2021 was the most profitable quarter in the company’s short history.
HMD has plans on how to grow – it wants to be the market leader for pre-paid smartphones in the US by the end of this year.
Another move is splitting services into a separate division that will focus on business users.
From there, it will slowly build out its business in ways that make sense and that support the core business.
Trying to compete in the flagship segment is tough, especially for smaller companies that have a harder time securing important components in times of silicon scarcity.
Maybe continue the entry-level and mid-range markets really is the more viable path.