How is COVID-19 affecting HMD Global?

Hi all, As well as the impending launch of 007-themed Nokia phones, I'm sure the other things that's occupying your minds at the moment is the COVID-19 coronavirus outbreaks/epidemic.

How is COVID-19 affecting HMD Global?

madbilly madbilly
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Hi all,

As well as the impending launch of 007-themed Nokia phones, I'm sure the other things that's occupying your minds at the moment is the COVID-19 coronavirus outbreaks/epidemic.

I was wondering how this is affecting HMD. After all, they are a global company (yes, there is a pun there, but it's not a good one so ignore it! 😆) so they depend on things from all around the world.

For example, they have offices in Shenzhen and their phones are mainly manufactured in China (probably Shenzhen) so they must have supply chain concerns if not concerns about the health of their own employees there.

It's been widely reported in the news that Foxconn have had to reduce or stop production of iPhones, and I'm sure this affects their other customers as well, including HMD (they still make the keypad-based phones, if not any smarphones):

And if we dig deeper we can find reports that some of HMD's suppliers like Wingtech, Longcheer and Huaqin we can see that their production has been reduced as well (I know that article is about tablets, but I'm sure smartphones are affected too):

Will HMD be affected more than other smartphone brands, or less? I suspect they will be affected more, because being smaller means they don't have as much leverage or influence over their suppliers to focus on production of their phones. For example, Samsung recently started outsourcing production of some of their smartphones to the same manufacturers which HMD uses, and who do you think has more infuence, Samsung or HMD?

HMD do have phones made in other countries though. The T9 keypad phones made for HMD by FIH Mobile (Foxconn) are assembled in Vietnam I think (in an old Nokia factory) and all phones sold in India are assembled there, as far as I know. Maybe the manufacturers are moving some capacity outside China to ensure they don't reduce supply too much, but how much HMD will benefit from this is unclear to me.

Considering HMD itself, I think they not be affected as much as some other vendors. They are quite small and don't have many big offices, instead their teams are spread around the world. I think their core business and technical offices are in Espoo, London, Dubai and Shenzhen, and only Shenzhen is so far seriously affected by COVID-19 (although that can of course change). HMD also have technical offices in Taiwan I believe, and maybe elsewhere in wider China and Vietnam, and of course there's a large HMd presence in India and I'm sure if necessary HMD will increase its technical capacity there to offset issues elsewhere.

How do you think that COVID-19 will affect HMD. What do you think they should do to reduce the impact?

Cheers 🙂

Comments

  • madbilly madbilly
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    Well, we know a bit more now. HMD have announced that COVID-19 is having an impact on their services, and it's possible that all services in India have been suspended although it might only be the online store, repairs, etc.

    COVID-19 might now be affecting HMD's offices and operations in Europe and North America too. It's quite clear that life is far from normal.

    Feel free to share your stories of how you've seen COVID-19 affect HMD's Nokia Mobile operations.

    Cheers 🙂

  • Lazysince1995 Lazysince1995
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    As per blog I read on nokia global site everything was related to network traffic. First it affected in network traffic and as you said it majorly affecting on global market, supply chain etc. Currently most of parts in Europe is lock down and even India too is under lock down for next 21 days now, so production must have reduced upto 40-60%

    Companies getting affected in multiple ways and I guess its affecting their future plans too.

  • madbilly madbilly
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    I wonder, if HMD and FIH Mobile had stuck together in their sole-ODM partnership, would HMD have an easier time through this COVID-19 period? After all, FIH Mobile would have a vested interest in ensuring that HMD could ship products, because they are literally invested in HMD. I feel like the multi-ODM strategy works well when potential supply is higher than demand and there is a lot of competition on the supply side. However, in this COVID-19 period, will HMD be getting less than preferential treatment from ODMs due to lack of an exclusive partnership and the smaller volumes which they procure?

    What is clear is that this is a difficult period for all industries which presents huge risks - especially for those with weak balance sheets....! It also presents huge opportunities for companies which have the agility and resources to take advantage of new gaps in the market. I wonder which category HMD fall into.

    Cheers 🙂

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