HMD Global has changed the brand strategy of Nokia – the Finnish manufacturer plans to refuse to offer top-end, flagship smartphones, focusing on bringing cheaper models to the market, which should contribute to profit.
Nokia was present at MWC 2022, which took place a few days ago – many were surprised by the Finnish company’s new offering, consisting mainly of high-budget smartphones. It turns out that this market strategy is not accidental.
In an interview with Android Authority, Adam Ferguson, head of marketing at HDM Global, said that the company has no plans to release expensive flagship smartphones in the near future. This decision should be supported by a thorough market analysis, which will show that interest in the top models from customers is not high enough for Nokia to compete with the major manufacturers.
The change in market strategy is to bring more cheaper devices to the market, including those from the lowest price range, using the Android Go system. These decisions have a positive effect on HMD Global’s finances.
Last year’s final quarter was the period with the highest profits in the history of the Nokia brand owner, with the sixth consecutive quarter ending in the black. Last year also brought 41% higher smartphone revenues than in 2020.