HMD Global, Nokia's Phone Manufacturer, Secures $230m In Funding From Google, Qualcomm And More

Aug 13, 2020 News

HMD Global, Nokia's Phone Manufacturer, Secures $230m In Funding From Google, Qualcomm And More

Nokia phones have been in a financial rollercoaster since their existence years and years ago. The phones which were once considered to be the best in the world at that time when smartphones didn’t exist, soon fell off the track as all the other manufacturers used Android or iOS, but Nokia was stuck on their own OS from Microsoft. This seriously hurt the company and brought its sales down significantly. However, after some time, the CEO decided it was time to change their strategy, and they finally went ahead with Android as the company’s main OS, and that started positive results for the company. Now they’re on a steady track of growth - not too fast, not too slow, but this breaking news may bring lots of good for the future of Nokia.

Nokia is actually owned by HMD Global, a Finnish company that’s helped the phone manufacturer get back on track. Their first Nokia device came in 2016, with the Nokia 6, as it was considered a decent phone for the price. HMD Global also helped Nokia get support for pure stock Android with the help of Android One getting on board. This promises about 3 years of monthly Android security update patches, and 2 years of complete Android OS updates. This has been a major factor in the surge of popularity in Nokia devices.

The news surfaced about HMD Global that they’ve secured $230 million dollars in funding from their associates like Google, Qualcomm and others for further development of their technology. The Finnish company said in a press release that they’ll use this funding in developing their 5G network in phones, and try to build a brand in the US region. A positive aspect for HMD is that since they’re in the European region, they don’t have any conflicts with the US, unlike China - and they can cash in on that opportunity by filling the current and potential void left by Chinese manufacturers.

Nokia currently operates and focuses on the Asian, African and Brazilian markets to drive most of its sales. This is because of the people mostly falling in the middle class, and thus they look for phones that can provide them value over anything else. However, they will need to change their marketing strategy and pricing policies if they want to penetrate a country like the US - but with the recent funding they’ve received, it seems more than likely that they will do so.



Rate this article:

Related articles