HMD, manufacturer of Nokia devices, plans to launch its own brand

HMD Global, the manufacturer of Nokia devices, has announced plans to launch smartphones under its own brand in the first half of 2024. The company is considering launching these HMD-branded devices first in India, which is a priority market for them. Ravi Kunwar, Vice President of India and APAC at HMD Global, has emphasized the importance of India as a critical market for the success of HMD-branded devices, including smartphones. He further stated that the company may adopt an "India-first" approach for these devices.

Kunwar said, HMD will manufacture all new brand handsets in India and may export them to other markets as well. The Indian government is encouraging local and affiliated entities to promote the entire manufacturing ecosystem, which is where the India opportunity comes in. India has the potential to produce significant supply chain initiatives and product design initiatives. The HMD-branded smartphone portfolio will be priced across different segments, and will target different consumer segments than the Nokia-branded portfolio.

HMD is collaborating with Foxconn, Dixon and Lava to manufacture smartphones and feature phones in India under the Nokia brand. The company has already started exporting its feature phones to African markets. According to the CEO of HMD, the feature phone market is expected to grow significantly in 2023, making it a watershed year for the market. HMD is also growing its share in the overall market. To boost sales of its Nokia smartphones, HMD has introduced a financing program called HMD Easy Pay in partnership with DMI Finance. The company anticipates that this new financing program will account for 25-30% of new smartphone sales. The program covers several Nokia smartphone models, including the Nokia G42. Xiaomi has also launched a digital loan disbursal program called Xiaomi Easy Finance (XEF) to drive sales of its smartphones, and market leader Samsung has its own financing scheme.