Nokia manufacturer HMD Global to make smartphone components in India

Into its second year of the 10-year agreement to use the Nokia brand, HMD Global of Finland appears to be making aggressive strides everywhere, particularly in the Indian market, where it has made spectacular progress in sales.

With a view to remaining competitive, HMD Global has now decided to go in for making of components for its phones locally rather than importing. The Indian government’s recent move to increase the duty on specific components like printed circuit boards seems to have triggered this move.

However, it may be done in phases and Foxconn, the manufacturer contracted by HMD Global to assemble the phones in the country has been advised in the regard according the company sources. The Nokia brand owner has indicated that they have started working with Foxconn to introduce the surface mounting technology for manufacturing printed circuit boards (PCBs) that could save them costs and time in the manufacturing process.

From the marketing perspective, HMD Global has plans to spread its offering across different price segments to gain more market share. The company already claims its Nokia phones have made a 500% jump in sales in just one year in the Indian market and is therefore looking at a more focused approach.

Its launch of the Nokia 8 Sirocco has to be seen in this light; it is a premium market and it is dominated by Samsung. HMD Global feels it can give the competition a tough fight. Two other devices, Nokia 6 and the Nokia 7 Plus with the Android One OS were also introduced here.

At the same time, Nokia will not lose sight of its role in the feature phones segment. It was partly nostalgia and mainly customer satisfaction that gave its Nokia 3310 feature phone a big push when launched last year. Customers prefer the phones for their longer battery life. HMD Global sees prospects in the feature phone segment also, particularly with companies like Reliance Jio joining the party in this segment.

The company is also into promotional campaigns for its brand Nokia with the tie-up with the IPL team Kolkata Knight Riders being part of that strategy. More such associations may follow. The Nokia Mobile Shop, an online exclusive outlet for its devices is also aimed at promoting the brand experience.