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.
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?