Hi all, Some news out recently which is a bit disappointing and also concerning: HMD's market share is dropping, they are selling less phones.
Some news out recently which is a bit disappointing and also concerning: HMD's market share is dropping, they are selling less phones. The industry is already suffering from the COVID-19 pandemic but it appears that HMD are suffering more, based on this research shared by Nokiamob:
This is the lowest quarterly feature phone sales since HMD started business and the lowest smartphone sales since they started selling globally (mid-2017). The lowest overall quarterly sales since mid-2017. They have lost market share on smartphones more than 3x the industry average, which means that COVID-19 isn't the only reason (in fact, impact from COVID-19 will probably be largest in Q2).
So what's the problem? Well, at risk of repeating what I and others have said for a few years, I think it's because their phones don't feel like Nokias. I can't imagine they get many repeat customers, because although the smartphones look nice and are robust the software does not feel like a Nokia - it doesn't look like Nokia software and it is also far from robust, primarily when OS upgrades are launched (we all know the bugs that these upgrades introduce, many of them breaking features).
So, I think HMD need to innovate in their software more. They are obviously putting a lot of resources into the camera but that is only one thing amongst many. There are many more ways they can innovate and it would be good to see some diversification from the "Pure" Android approach. I know they've launched this HMD Connect global SIM card but that's more like product diversification, it doesn't directly innovate on the phones themselves.
Of course, HMD are in a bit of a pickle with this, as their marketing is based on Pure Android and their business model is based on selling high volumes of products from a range of ODMs at a very wide range of price points. To try and innovate on software will probably require reducing the number of devices sold so they can try and maintain/improve quality of software.
What else could they do?
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