Today's news, HMD confirmed that it has temporarily abandoned the plan to develop Nokia's flagship mobile phone. It is understood that at the previous MWC2022 exhibition, Adam Ferguson, HMD's global product marketing director, said in an interview that making an $800 mobile phone has no meaning for HMD and does not want to get involved in the current specification war. That is to say, nokia will continue to focus on polishing high-quality functional machines and entry-level low-end smart machines.
According to Nokia's 2021 financial report, Nokia's net profit attributable to common shareholders for the whole year was 1.623 billion euros, an increase of 164.33% year-on-year. HMD, on the other hand, has been profitable for six consecutive quarters, with the fourth quarter of last year being the quarter with the highest profitability for HMD. From the perspective of revenue, HMD's strategic adjustment for Nokia mobile phones is indeed conducive to the sustainable development of group enterprises.
As a former hegemon of the mobile phone industry, Nokia has not tried to return to the high-end market, and has previously copied Nokia's classic models while also accelerating the output of innovation in the high-end field. For example, the Nokia 9 PureView, which was officially launched at the 2019 Mobile World Congress, has a rear five-lens combination, but the market response is flat. Now that Nokia has withdrawn from the flagship mobile phone competition and focused on manufacturing feature machines and low-end smart machines that can be used for several years and have a battery life of up to several days, it is not necessarily a bad thing in the Red Sea market, and it is better to consolidate its own differentiated advantages and consolidate market share.