The long term future of HMD Global and Nokia phones

So I've been thinking about this lately and there doesn't seem much discussion about this topic.

The long term future of HMD Global and Nokia phones

So I've been thinking about this lately and there doesn't seem much discussion about this topic.

From what I understand, HMD relies on investor funding from these three: (source)
Ginko Ventures, FIH, and more recently DMJ Asia Investment Opportunity, which gave HMD a market valuation of USD1 billion and achieved unicorn status in the process.

So a quick recap of HMD's present and future strategies:

• HMD is founded and they get the rights to sell Nokia branded phones and tablets for 10 years.
• $500 million will be spent over three years on marketing
• HMD want to become one of the top players in the market in the next 5 years
• HMD sold around 70m phones at the time
• HMD raises 100m USD from Ginko and DMJ giving it unicorn status
• Flagships (N8S, N8) aren't doing so well compared to midrange/low-end phones
• More accessories planned to expand ecosystem
• Nokia 9 PureView released and receives mediocre reviews
• HMD is still struggling in the smartphone front, especially in the higher end segment, selling only ~5m smartphones

So what is the long term future for HMD? Surely they can't rely on investor funding forever.

• Do they get bought out by a larger company?
• What happens after the 10 year agreement ends?
• Does Nokia acquire the company after the license expires in 2026?

Would love to know others' thought on this.






Comments

  • John Jennings John Jennings
    ✭✭  / 
    Reading employee reviews on glassdoor has been a massive eye-opener. It sounds like there is currently a toxic culture within the company, with top-heavy, unresponsive management, racism and a lack of diversity in the recruitment process, and a lack of dynamism and development opportunities for staff. Many of the reviews state that the company is finished.

    I don't know about everyone else. Maybe I'm still hanging on what HMD are doing because I have such fondness for the Nokia brand, but I do expect companies who receive my money to behave ethically towards their staff. Reading page after page of dissatisfied staff has made me think twice about spending any more with them :neutral:
Sign In or Register to comment.