Nokia phone maker HMD Global to create its own phone brand

HMD Global, the licensee of the Nokia Mobile brand, has announced plans to launch its smartphones. The company's co-founder and president, Jean-François Baril, clarified on LinkedIn that it will continue to make smartphones under the Nokia brand. However, it also enters the segment after years of research and development. Baril adds that the company has also built "extensive global operational and distribution networks."

For HMD smartphones, the company will collaborate with "new partners." It will also leverage research used for Nokia phones. The post says: "Now we are ready for the next step on our journey - to enter the market independently as a force to create a new world for telecommunications focused on consumer needs."

Baril's posts suggest that HMD Global's standalone smartphones will continue to focus on clean user experience, 5G, and easy repair, standard features in Nokia-branded smartphones. Initial products will likely focus on a select group of customers, while Nokia phones will be made for the masses.

The publication notes, "Combined with a steadfast commitment to delivering high-quality, affordable mobile devices to consumers around the world, every single one of us at HMD is excited for our future of designing innovative products that endure, reducing electronic waste, helping people keep their mobile devices for longer and making a positive impact on the planet."

HMD Global has yet to clarify the smartphone's name or the launch schedule. The Finland-based manufacturing company has been an official licensee of Nokia Mobile for more than six years.

In the initial phase, HMD phones could also be restricted to European markets as the company has a strong regional presence. Baril also notes that HMD has corporate data stored in the region. However, the timing is equally complicated as the global smartphone market has declined for the past few quarters. Nokia also faces stiff competition from Samsung, Apple and its Chinese counterparts in the same region.

According to IDC's second quarter 2023 data, global smartphone shipments decreased 6.8 per cent year-over-year to 268.0 million units. Globally, Samsung dominates the market (20 per cent share in Q2 2023), followed by Apple (16.6 per cent share) and Xiaomi (12.4 per cent).

Even in India, Nokia phones face tough challenges from their Chinese counterparts despite offering better repairability and longer Android update promises. HMD Global launched the Nokia G42 5G earlier this week with a Snapdragon 480+ SoC. The phone features a minimalist design and a clean software experience. It costs Rs 12,599 for the only 6GB RAM + 128GB storage model.