The most important European smartphone manufacturer has a sales problem. A hefty financial injection for HMD Global is now supposed to ensure that Nokia cell phones remain relevant in the future. New markets are also to be conquered. Can it work?
Nokia: 195 million euros in financing secured
After a new round of financing, HMD Global, as a manufacturer of Nokia smartphones, can now fall back on a whopping sum of around 195 million euros. The Finnish company has now announced this, along with the goal of being present in more markets in the future. Brazil, India and the entire African continent are mentioned by name. In the USA, too, they would like to attack more intensively in order to be able to sell more cell phones. New services are also to be added. Nokia smartphones are available in 91 countries.
There was no specific answer to whom the money came from. It should come from “global strategic partners” who believe in the future of the traditional mobile phone brand. HMD Global sees “exceptional product quality” in its smartphones, which is underlined by “market-leading reliability”. What is meant is the promise that HMD Global smartphones will receive security updates for three years, while other manufacturers often end it after two years.
HMD Global was increasingly in crisis with its Nokia phones. After a brilliant start, in which several million units were basically sold every quarter, the numbers have been going down significantly since mid-2019. Fewer and fewer customers are opting for a mobile phone from Nokia, which is clearly noticeable in sales.
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Nokia: Small market share in Germany
HMD Global’s smartphones don’t sell particularly well in Germany. According to StatCounter, the market share should be just 0.7 percent, which means the company is still behind Motorola and LG. If the European market is considered, it doesn’t look much better with a share of 0.95 percent. From a global perspective, Nokia is grouped under “Other”.