In it’s annual report, as spotted by Finnish tech site mobiili.fi, FIH Mobile revealed information about HMD Global’s business performance in the fourth quarter of last year.
First of all, let’s clear up how FIH Mobile is related to Nokia smartphones. When Finnish Nokia announced its return to the smartphone market, the company entered into a partnership with HMD Global, a newly founded startup that became the licensee of the Nokia brand for phones, and FIH Mobile, owned by Foxconn, which became the exclusive manufacturer of new Nokia phones.
In 2019, HMD Global decided to pursue a multi-ODM strategy, meaning more companies were contracted with the manufacturing of new Nokia phones. The reason was a financial one, for both HMD and FIH Mobile. FIH Mobile is also in the ownership structure of HMD Global by owning around 10% of HMD Global.
This strategy, coupled with increasing focus on key markets, might proven to be successful for HMD Global in the 4th quarter of 2019. As FIH says in its annual report, the mentioned reasons helped HMD make profit (before taxes) for the first time in Q4 of 2019. The report mentions that HMD is still in the process of a Series B funding round and hopes to close the round during the first half of 2020.
In these dark times, it’s great to hear some positive news. We are also excited to get the new Nokia smartphones for review to better judge Nokia Mobile’s 2020 offering.