In early 2017, new smartphones under the Nokia brand appeared on the market. Both journalists and ordinary users showed an interest in new products, because truly legendary devices were once produced under this brand.
Unfortunately, many things related to new smartphones are left behind the scenes. The average user at best knows that behind these devices is the Finnish company HMD Global, more advanced - that mobile devices are somehow connected also with Foxconn, and more precisely with its daughter FIH Mobile. Details marketers promoting Nokia smartphones do not like to share. Most often, they are limited to statements that assure us of the presence of the “device development team at HMD Global”, “devotion to Nokia values”, and also say that Nokia’s production is launched at Foxconn’s factories (just like Apple and other mobile players ).
You should also understand that we at HMD develop our products from the very beginning to the very end. We collaborate with Google, Android, Nokia and Foxconn. The latter is our production partner. But we control the production process completely. You probably know that many of our competitors also use the services of this manufacturer.
From an interview with Pekka Rantala, director of marketing for HMD Global, edition w3bsit3-dns.com .I wondered if these statements were true, and together with a friend we began to delve into the documents about this. Who develops, then produces and sells new smartphones under the Nokia brand?
Nokia Mobile History
Before you get acquainted with the current situation with Nokia smartphones, you need to find out what happened to them in the past few years.
In 2014, Microsoft acquired Nokia’s mobile division for € 5.4 billion. Nokia Devices & Services was renamed Microsoft Mobile, and the division continued to work as part of the Redmond giant.
Already at this stage I want to draw attention to one detail. Nokia Devices & Services led activities in two directions - smartphones and regular phones (simpler dialers or feature phones). These categories were separated - for example, the director of smart devices, Jo Harlow, and the director of dialers, Timo Toikkanen,
switched to Microsoft separately. The separation was maintained inside Microsoft Mobile - departments for smartphones and push-button dialers worked separately.
Already in 2015, Microsoft, under the leadership of the new CEO, began to gradually phase out work with smartphones, and by mid-2016 this process was almost complete. Some employees were scattered around other teams within the company, most of them were fired. However, this did not affect (or did not touch so strongly) the unit engaged in push-button dialers. It continued to produce more and more new models. What for? Instead of simply closing the remnants of Nokia Devices & Services, Microsoft decided to sell them.
The deal between Microsoft, Nokia, HMD Global and FIH Mobile
The sale of Microsoft Mobile balances to FIH Mobile and HMD Global has become the starting point of the entire business associated with new smartphones under the Nokia brand. Much has been written about this deal, but we will only turn to official sources, one of which is the
Microsoft press release .
Microsoft Official StatementMicrosoft Corp. I have signed up for a $ 350 million subsidiary of Hai / Foxconn Technology Group, and a subsidiary of HMD. As part of the deal, FIH Mobile Ltd. will also receive the Mobile facility of Hanoi, Vietnam, manufacturing facility. FIH Mobile Ltd. or HMD Global, Oy, subject to compliance with local law.
This press release makes it clear that Microsoft only sells a business related to dialers. Speeches about the smartphone division, which by that time was already ending to liquidate, are not here. Accordingly, no Finnish smartphone development team HMD Global or FIH Mobile could receive from Microsoft. I admit that isolated cases of transfer to the companies indicated above took place, but the Nokia / Microsoft smartphone division has sunk into oblivion definitively and irrevocably even before the deal in question.
A bit about the composition of HMD Global
One of the things that marketers' words about “our development team” do not match is the composition of HMD Global, which can be found on the
official website .
The fact is that among the managers of the company there are no people who are in any way related to technical areas. You will find directors of marketing, finance, product launches, but you will not be able to find the chief of technology or development. Why?
Agreement between Nokia, HMD Global, FIH Mobile and TNS
Although the news about the deal between Microsoft, HMD and FIH has spread all over the Internet, quite a few people have noticed the agreement between Nokia, HMD and FIH for some reason. At the same time, it sheds light on the origin of new smartphones. Fortunately, the document
is available for download in the section for investors on the official website of FIH Mobile. Already the second paragraph reveals the essence of cooperation between the three companies:
... This business will be based on:
(i) the Nokia brand and some intellectual property of Nokia Technologies;
(ii) technology, manufacturing, supply chain and research (R & D) of FIH Mobile and TNS;
(iii) the commercial opportunities that HMD and TNS will acquire for distributing Nokia mobile phones and tablets.
Original quoteThe Company was signed in the British Virgin Islands (“TNS”) and entered into a collaboration agreement (the “Collaboration Agreement”). with Nokia Technologies Ltd., a limited liability company in Finland (“Nokia Technologies”), and a limited liability company in Finland (“HMD”), It is a brand new business that has been in the field of mobile technology; (ii) the company's and TNS 'technologies, manufacturing, supply chain; It is subject to the law.
The agreement contains clear language disclosing information about the development of new Nokia devices. This process (R & D) is the responsibility of FIH Mobile, and not any HMD Global teams. Nokia has similar information. Thus, in
one of his documents (page 25), the former giant of the industry spoke about the brand licensing model in the mobile market, confirming the words FIH.
To get the most complete picture of the cooperation of the parties, it remains only to find out what the TNS group of companies is doing.
TNS Mobile Oy
We decided to study the FIH Mobile reports for the 2016-2017 year. They, as well as the agreement between Nokia, HMD, FIH and TNS, are in the public domain.
We scanned the documents and found enough information about TNS and its collaboration with HMD Global and FIH Mobile. Below I will give the main theses, and you can find original quotes directly in the reports or under the spoilers.
Quotes from the report for 201622nd page:
HMD's company notes ambitious plans to become a globally recognized player in the handset and tablet markets. In this case, it has been up to a number of assets (including mainly in Asia). and EMEA) to facilitate its provision of distribution services and end consumers.
22nd page:
In the United States of America, it’s not a problem. comprehensive distribution / fulfillment network.
134th page, FIH Mobile subsidiary table:
Fushan Technology is the
new name for the Nokia / Microsoft Mobile plant in Vietnam.
Quotes from the report for 201736th page:
It has been shown that it has been declining to make it possible for the HMD which is a Finnish company. TNS (which is a distributor of HMD) and distribution services income.
38th page:
For the manufacturing of the HMDs, right now we are a feature of phones and smart phones are manufactured in China and India.
38th page:
For example, the phone is a telephone number from the TNF in the United States of America, the telephone group from the TNF in December 2016 outlets are selling phone distribution coverage is worldwide. For the smart phone part of the phone, it’s strongly to make it possible to reach worldwide distribution coverage.
We find out that:
- In 2016, FIH Mobile created a subsidiary of TNS, which includes at least TNS Mobile Oy and TNS Mobile International Oy. The first deals with the distribution and sale of devices, and the second with marketing. TNS also controls the Vietnam plant, which was acquired from Microsoft.
- TNS provides device sales services to HMD Global. TNS distribution channels are based on distribution networks purchased from Microsoft.
- Nokia branded smartphones are manufactured in factories in India and China. At the former Nokia / Microsoft factory in Vietnam, only push-button dialers are assembled.
According to these documents, new smartphones (namely, smartphones, and not dialers) under the Nokia brand appear as follows:
- FIH Mobile is engaged in research activities and develops devices. In its composition there are no old Finnish Nokia teams on smartphones, since Microsoft sold only the business associated with dialers.
- Designed devices are assembled in factories in China and India.
- FIH Mobile sells Finnish HMD Global devices.
- HMD Global donates smartphones purchased from FIH Mobile to the TNS group of companies (the daughters of this very FIH). TNS also makes a profit by selling them to end customers.
HMD Global is similar to the "Finnish screen", which marketers use to bring about the effect of nostalgia on the legendary brand among buyers. The main activity associated with smartphones - R & D, production and distribution - is concentrated in the hands of FIH Mobile and its subsidiaries TNS.
Conclusion
Be careful with the words of marketers promoting new smartphones under the Nokia brand. Official documents contain descriptions of operations, which are not told in advertising, but which may affect your opinion on certain devices.
Separately, I will add that the above facts can only be used to analyze the origin of new Nokia
smartphones . New
dialers under this brand (Nokia 3310, Nokia 8110) are very likely to be developed and even made by those who did it with Nokia and Microsoft, since the corresponding unit is currently located within FIH Mobile / HMD Global.