FIH Mobile, the official manufacturing, R&D and logistics partner of HMD Global and Nokia, posted financial results for the first half of 2017. FIH Mobile saw a 90% increase in revenue to roughly $4.38 billion, compared to the first half of 2016. The profitability suffered with such growth. FIH posted almost $200 million in loss, compared to the 21 million in profits in the first half of 2016.
Such revenue growth was caused by higher demand from leading Chinese players, were FIH has a contract with two manufacturers that are among top 5 vendors on the planet. The agreement with HMD global impacted sales, especially in Europe and Asia. Strong demand for Nokia 6 and feature phones surprised HMD and FIH, and growth of revenue is expected with bigger volume of devices.
FIH mentions that the HMD deal puts pressure on the margin, because the phones need to be aggressively priced. They don’t mention any problems with manufacturing, but note that the partnership with HMD and Nokia is a long term partnership.
FIH’s detailed results for the first half of 2017 can be downloaded (PDF) here.