Who is really behind the new smartphones under the brand Nokia
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 of 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 market players do). ).
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?
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 divided - for example, Microsoft movedseparate director of smart devices, Jo Harlow and director of dialers, Timo Toikkanen. 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 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 .
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.
One of the things that marketing 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?
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:
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.
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.
We find out that:
According to these documents, new smartphones (namely, smartphones, and not dialers) under the Nokia brand appear as follows:
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.
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.
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 of 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 market players do). ).
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 divided - for example, Microsoft movedseparate director of smart devices, Jo Harlow and director of dialers, Timo Toikkanen. 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 Statement
Microsoft Corp. on Wednesday announced it reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million. As part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam — the company’s Hanoi, Vietnam, manufacturing facility. Upon close of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, 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 marketing 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 of the 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 quote
The Company is pleased to announce that on 18 May 2016, the Company and TNS Limited, an indirect wholly-owned subsidiary of the Company incorporated in the British Virgin Islands (“TNS”) entered into a collaboration agreement (the “Collaboration Agreement”) with Nokia Technologies Ltd., a limited liability company incorporated in Finland (“Nokia Technologies”), and HMD global Oy, a limited liability company incorporated in Finland (“HMD”), to establish a collaboration framework among the parties with a view to building a globally successful business in the field of Nokia-branded mobile phones and tablets based on (i) the “Nokia” brand and certain of Nokia Technologies’ intellectual property; (ii) the Company’s and TNS’ technologies, manufacturing, supply chain, and research and development activities; and (iii) the commercial capabilities in the field of mobile device business to be acquired by HMD and TNS for distribution of Nokia-branded mobile phones and tablets (the “Collaboration”) upon and subject to the terms and conditions set out therein.
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 2016
22-ая страница:
Fushan Technology — новое название завода Nokia / Microsoft Mobile во Вьетнаме.
The Company notes HMD’s ambitious plans to become a globally recognised player in the handset and tablet markets. In support of this, in addition to such feature phone assets acquired from Microsoft Mobile Oy, TNS has been setting up, activating and operating new entities in the relevant locations with the aim to establishing and operating more comprehensive distribution/fulfillment channels (mainly in Asia and EMEA) to facilitate its provision of distribution/fulfillment/after-sales services to HMD and end consumers.22-ая страница:
In 2017, as mentioned above, TNS has to continue to put efforts and resources and recruit more talents to develop products and build up IT and management systems and applications and run the Vietnam facility in a cost-effective manner and set up additional subsidiaries and branches for the purposes of its more comprehensive distribution/fulfillment network.134-ая страница, таблица дочерних компаний FIH Mobile:
Fushan Technology — новое название завода Nokia / Microsoft Mobile во Вьетнаме.
Quotes from the report for 2017
36-ая страница:
38-ая страница:
38-ая страница:
The revenue of Europe segment increased a lot in the current period as the Group has started to manufacture feature phones and smart phones in Asia (China and India and Vietnam) under the new business relating to the Nokia-branded phones and sell the phones to HMD which is a Finnish company. TNS (which is a distributor of HMD) then sells and distributes some of the handsets throughout the European markets for HMD and earns distribution service income.
38-ая страница:
For the manufacturing part of business with HMD, right now we manufacture feature phones in Vietnam and India whilst Smart phones are manufactured in China and India.
38-ая страница:
For the feature phone part of the new business, the Group, via TNS, started business with acquired feature phone channel from MSFT in December 2016 and now has direct commercial relationships with over 600 distributor partners and customers spreading over 70 countries, and over 250,000 retail outlets are selling Nokia mobile devices and the feature phone distribution coverage is worldwide. For the smart phone part, the Group, via TNS, is strongly building on feature phone channel 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.