HMD Global has managed to break the five-year loss spiral

18. 05. 2022 Wednesday / By: Robert Denes / Business / Exact time: BST / Print this page

N okia According to the company, HMD Global, a manufacturer of branded phones, closed this year with a loss. The company does not report its operating results accurately, but it is slightly profitable based on unaudited data, says CEO Florian Seiche.

"Our business has been profitable for six consecutive quarters and last year."

"Sales of our most important products, smartphones, grew 41 percent."

He is particularly pleased with the development of traffic. It rose 17% to € 1.4 billion last year. The previous year, the coronavirus epidemic and parts shortage disrupted the business, although it continues.

In 2020, HMD Global had net sales of € 1.2 billion and an operating profit of € 32 million.

Market research firm Strategy Analytics says HMD Global sold 15 million smartphones last year, with a market share of one percent. Last year, a total of 1.4 billion smartphones were sold worldwide.

The company’s phones are divided into three groups: basic phones, mid-range smartphones and high-end smartphones. The main markets are Africa and Europe. Middle East and the United States.

“We also have a good footing in selected countries in Latin America and Asia. We are also targeting a market where smartphone usage is relatively low and the Nokia brand has a strong position. Said Seiche.

In 2016, HMD Global, founded in 2006, employs more than 700 people in Espoo. You have the exclusive right to use the Nokia trademark on mobile phones and tablets for ten years worldwide. In addition, HMD Global has licensed Nokia's patented inventions.

Most of the company’s shares are owned by electronics contract maker Foxconn, network equipment maker Nokia, Qualcomm semiconductor maker Google and software company Google. HMD Global’s smartphones run Google’s Android operating system, which Nokia once rejected when Microsoft introduced software on its smartphones.

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