A recent report from FIH Mobile revealed information on HMD Global business performance in the fourth quarter of last year. According to the report, HMD achieves its first profit (pre-tax) in the fourth quarter of 2019. The report mentions that HMD is still in the B round of financing and hopes to close the round of financing in the first half of 2020.
When Nokia Finland announced its return to the smartphone market, the company partnered some startups. Foxconn-owned FIH Mobile is one of these companies and they exclusively manufacture new Nokia phones. In 2019, HMD Global decided to implement a multi-ODM strategy. This means that more companies have signed contracts to manufacture new Nokia phones. FIH Mobile owns about 10% of HMD Global and therefore also belongs to HMD Global’s ownership structure. This strategy, coupled with a growing focus on key markets, may be responsible for HMD Global’s success in the fourth quarter of 2019.
HMD’s Nokia has been struggling in recent times. Not just in its smartphone business, even its 5G construction is facing some major challenges. This latest report will bring some sort of relief to the company. It can now better face this year with the recently released Nokia 8.3 and upcoming flagships like the Nokia 9.2.