KIANEWS 
HMD Global today unveiled its latest smartphone, the HMD Fusion, an affordable device whose idea is to change functions and style with a shell. This is how the HMD Fusion will initially be distributed, but additional devices will be available later this year.
HMD aims to boost Indian exports amid rising US-China trade tension
27. 11. 2024 Wednesday / By: Robert Denes / Business / Exact time: BST / Print this page
HMD, the maker of Nokia-branded mobile phones, is building capacity and a local supplier ecosystem, anticipating higher exports from India to global markets as the US administration under President-elect Donald Trump is expected to impose higher tariffs on Chinese products.
"The US developments create an opportunity for India as another manufacturing hub. Our organisation is prepared and obviously yes, we are (scaling). A large part of our sourcing and supply chain is outside India,"Ravi Kunwar, CEO and VP, HMD, told Mint in an interaction.
The company aims to increase its exports from India to over 4 million. HMD currently exports Nokia-branded mobile phones and smartphones to West Asia and Africa from India. Exports to the US and Europe are now getting a bigger focus.
He added that the local contract manufacturing ecosystem has grown tremendously, allowing many companies to depend on local players, but noted that there is a need to develop the local component manufacturing ecosystem as the component supply is still dependent on China.
"This is an area where we are working very closely with the government on what the right policies are for India to stand on its own," Kunwar added. The government is currently putting in place policies to encourage local component manufacturing to support the government's Make in India initiative.
Mint reported in July this year that HMD is looking to increase local production by 30-40% by 2025 from the current 15-16 million units per year, while the volume share of smartphones within this mix will more than double. Currently, the production is 70% gaming phones and 30% smartphones, and is done through a partnership with electronics manufacturer Dixon Technologies. HMD has signed a deal with Zetwerk subsidiary Zet Town India to expand capacity.
The Finnish smartphone maker, which aims to make India its global operating platform for production and exports, is betting on new form factors like Mattel’s Barbie Flip phone and its Fusion series with multi-purpose backs to capture value and volume market share in the Indian market.
The Fusion, priced at €15,999, comes with a gaming console as a detachable back that can also be connected to a TV, as well as a ring light back for selfies. HMD believes the device, along with its previous Crest series and Skyline, will help it capture a larger share of the lucrative €10,000-25,000 market.
Kunwar added that the company's 2025 strategy focuses on three pillars, first offering secure devices, referring to the large presence of Chinese brands. "We think we have an advantage because we are Finnish and we do everything outside of Finland, and there are a lot of geopolitical tensions that are making companies "They are using safer devices,"Kunwar said.
The other two include offering detox devices, which means non-smartphones and feature phones; and device financing, which allows consumers to purchase on easy payment plans with minimal or no interest, and soft lock, which allows the company to terminate the service if the installments are not paid.
"This whole business model works very well for us in Africa, especially in Kenya. "We are now bringing this feature to many emerging markets where it can bridge the gap between those who want a smartphone but cannot afford one," he added.
HMD, which has the license to manufacture and sell Nokia mobile phones until the end of 2026, launched its first smartphone range under its own brand Crest in India in July. It currently has four models in global markets, including the Pulse and Skyline series.
According to Counterpoint Research, around 160 million smartphones will be sold in India by 2023, of which the two brands together aim to capture a significant share. They currently have around 1-2% market share in the country.
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