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.