Up until now, HMD Global has proudly called itself “the home of Nokia phones”, as Nokia-branded hardware is all it offered. However, things are expected to change in the near future, as per the words of Jean-Francois Baril – chairman and CEO at HMD.
Jean mentioned that they are working on establishing HMD as a brand. Consumers can expect HMD-branded mobile devices and collaborations with exciting new partners. He didn’t forget to mention that HMD will continue developing Nokia-branded phones. So, Nokia phones aren’t going anywhere just yet.
I am thrilled to announce a significant milestone in HMD’s evolution – we are establishing an original HMD brand. You can expect to see a new portfolio of HMD branded mobile devices, as well as Nokia devices and collaboration with exciting new partners.Jean-Francois Baril (LinkedIn)
He further writes that HMD is “ready to enter the market independently as a force to create a new world for telecommunications focused on consumer needs”.
The mobile phone industry is very competitive, and it is not relatively easy for a new brand to sustain and survive without a pile of cash to burn. HMD hasn’t shown much success in years, even with the iconic Nokia brand name at the helm. So, seeing how Baril steers HMD from here onwards will be interesting.
The shift in the strategy is likely related to the validity of the Nokia brand license that HMD utilizes to make Nokia phones. The exclusive license was granted in 2016 for 10 years, out of which more than 7 years have elapsed.
Nokia might have shown an unwillingness to renew the license as it pursues a new strategy with a redesigned logo. Or HMD wants to be in a better position in case Nokia refuses to renew the license or the license terms are unfavorable. Also, it is desirable to build an original brand instead of living off the Nokia logo. Whatever the real factor is, HMD Global is at yet another exciting point, and the future will be interesting for consumers and the industry.
Source: Jean-Francois Baril (LinkedIn) | Thanks to Thomas for the share.