Nokia Mobile partnered with FIH at its very beginnings to bring back Nokia smartphones to the market. That business arrangement lasted for a while, but Nokia Mobile changed its strategy in the past two years and it is trying to find a local manufacturer at some larger markets. A great example of such a market is India, which is important for the Nokia brand since there are a lot of manufacturers that can assemble smartphones from scratch. There is also the historical importance of India since Nokia used to manufacture its phones there till the very end of the Devices and Services department.
In 2019 Nokia Mobile announced that the phones sold in the Indian market will also be carrying a “Made in India” inscription. Nokia 5.3 sold in India, for example, is already made there. Now the Economic Times India reports that Lava, an Indian handset manufacturer, is already making Nokia phones in India. This will have a positive effect on the price of 4G phones, which will sharply go down.
Nokia won’t be the only brand that Lava is going to manufacture. Apparently, the Indian handset manufacturer is in talks with Motorola to achieve a similar agreement as with Nokia. The obvious plan of Lava is to strengthen its position as a manufacturer now when people are taking good care if the electronics are made in India or China. Lava even improved its manufacturing line, which is now capable of producing 30 million smartphones and 40 million feature phones.
Generally, I don’t mind if Nokia phones are made by Lava, or any other manufacturer for that matter, if some needed quality standards are met and if the quality control criteria are high enough. This deal is definitely good for both Lava, Nokia, and all the other brands since it will make their products more competitive in the market due to lower manufacturing costs, and probably united logistics.