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Founded in 2016, HMD Global Oy specializes in the development and production of branded mobile devices. Nokia
Performance indicators
2018: Revenue - €2.4 billion; losses - 189 million euros
In 2018, HMD Global generated revenues of €2.4 billion against €1.8 billion a year earlier. At the same time, the company remains unprofitable.
Moreover, cash losses are increasing: in 2017 they were measured at 65 million euros, and a year later net losses reached 189 million euros.
HMD Global Product Director Juho Sarvikas linked the lack of profit to rising costs for manufacturing, logistics, and research and development, including new technologies for cameras and materials. At the end of 2019, HMD Global company hopes to get rid of losses.
In 2018, 80 million branded mobile phones were sold Nokia - HMD Global is responsible for the development, production and sale of such devices. Compared to 2017, sales of pipes increased by about 10 million units. Nokia phones are bought by men aged 35 and over, according to the company.
HMD Global has high hopes for the devices unveiled in early September 2019. Among them are Nokia 7.2 smartphones with a triple camera with a 48-megapixel image sensor and ZEISS optics and Nokia 6.2 smartphones with a triple camera running AI technologies and a PureDisplay screen. In addition, the manufacturer has expanded its line of push-button phones and announced three devices for new market segments operating in 4G networks.
HMD Global has decided on strategic development areas. Investments will be directed to areas such as photography, security, design and advanced materials. In addition, the company plans to release low-cost devices with 5G support.
To improve financial performance, HMD Global expanded its product range in 2018, doubled partner channel sales in key markets and attracted about $100 million in investments.[1]
History
2019: Nokia smartphones send data to China
On March 21, 2019, it became known that smartphones Nokia they were sending personal data users to a Chinese server. The manufacturer acknowledged the issue and claims to have fixed it.
Nokia 7 Plus phone owner Henrik Austad shared observations of his device with NRK. According to the user, he noticed that the handset often communicates with a certain Chinese server and sends him a packet.
Traffic is transmitted in unencrypted form, so Austad was able to check the contents of the packets. It turned out that the smartphone sends easily identifiable data tied to the device and phone number. In particular, we are talking about location coordinates, the serial number of the device and information from the SIM card, including the phone number.
Each time after unlocking the device, data was sent to a server in China, which supposedly belongs to the local telecommunications company China Telecom. Recipients of this information could track the movement of the smartphone in real time.
One possible explanation for this is that an application designed for the Chinese market somehow got into Nokia models in other countries. However, cybersecurity researcher Dirk Vetter, who also noticed China sending traffic from its Nokia 7 Plus, doubts the accident.
 | It was a deliberate act of the operator to gain access to Nokia's internal systems, the expert said in a conversation with NRK. |  |
HMD Global, which develops and sells Nokia-branded smartphones, has confirmed "data transfer to a Chinese server from an undetermined number of Nokia 7 Plus." The company assured that no personal information was transferred to third parties, and users could not be identified from the transmitted data. The bug was fixed in February 2019 and nearly all smartphones it affected received updates, HMD said. Finnish authorities are investigating.[2]
2016
Closing a deal to buy Microsoft's phone business and gaining rights to Nokia's smartphone brand for 10 years
On December 1, 2016, Nokia officially announced the return of its brand to the mobile phone market. True, the Finnish company itself will neither develop devices nor sell them - it will act only as a licensor.
According to Nokia, the deal announced on May 18, 2016 to sell the business of producing conventional mobile phones Microsoft to the Finnish company HMD Global and the Chinese FIH Mobile (part of the group) Foxconn Technology for $350 million was closed.
Under the terms of this agreement, HMD Global received the right to use the Nokia brand and related intellectual property for 10 years. In 2017, HMD Global will launch regular push-button phones under the Nokia brand, and a little later will introduce smartphones tablets. In particular, the release - Androidsmartphones Nokia is scheduled for the first half of 2017, the agency reports Reuters , citing a statement from HMD Global.
Nokia will receive royalties from HMD Global for each mobile device sold under its brand. The amount of royalties is not specified. Nokia notes that the company is neither an investor nor a shareholder of HMD Global. Nokia phones and tablets will be manufactured at Foxconn.
HMD Global CEO Arto Nummela says the company wants to become one of the key players in the smartphone market thanks in large part to established partnerships with mobile operators and retailers. HMD Global is founded by former Nokia top executives.
| | In fact, we see opportunities to free up some space for us on store shelves. Consumers can get carried away with various smartphones, but the question is whether they love these brands and are devoted to them, "said Nammela.[3] | |
Announcement of the purchase of part of the Microsoft telephone business
On May 18, 2016, Microsoft Corporation announced the sale of the mobile phone business to two companies: the Finnish HMD Global, which was mainly staffed by former Nokia employees, and FIH Mobile, a subsidiary of the Taiwanese company Foxconn, which also produces HMD products. The total value of the transaction amounted to $350 million.
All three parties - Nokia, HMD Global Oy and FIH Mobile - have signed an agreement to jointly support the Nokia brand in the global phone and tablet markets. According to the agreements reached, HMD gained control over sales, marketing and distirbution of Nokia-branded mobile devices. In turn, FIH provided manufacturing facilities, access to part manufacturers and the design department.[4] Read more here.
Notes
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