Resurrecting Nokia: HMD’s Strategic Decision to Produce Nokia Phones in Europe


Introduction of Nokia

Incorporated in Finland in 1865, Nokia is a leader in consumer electronics and telecommunications. Nokia has changed and expanded its product line throughout the years, but it is most known for its innovative work in the mobile phone industry. In fact, Nokia produced a wide range of products that were recognised for their dependability and durability, making it the top mobile phone maker in the world for more than a decade.

Nokia’s dominance of the mobile phone market started to wane in the early 2000s as rivals developed more sophisticated products with features like touchscreens and app stores. Yet, Nokia has persisted in innovating and developing, and as a result, the corporation is now concentrated on offering companies and service providers software services, network equipment, and infrastructure for telecommunications.

Nokia is still a well-known brand with a long history of technological innovation, despite its difficulties in the mobile phone market. The company’s continuing focus on innovation signals that it will be a vital player in the telecommunications sector for years to come. Its products and services have significantly influenced how people interact and communicate with one another.

Nokia Brand: The Success Story of HMD Global

The Finnish business HMD Global was established in 2016 with the intention of revitalising the Nokia brand in the mobile phone industry. The business was founded with the assistance of Nokia and many investors, and it is governed by a licencing agreement that permits it to use the Nokia brand name for its goods.

Since its inception, HMD Global has concentrated on developing reasonably priced smartphones that incorporate the style and dependability that made Nokia phones so well-liked with contemporary functions and technology. The business has produced a number of popular smartphone models, including the Nokia 6, Nokia 7 Plus, and Nokia 9 PureView. It has also increased the range of products it offers to include feature phones, accessories, and other consumer electronics.

Customers all around the world have embraced HMD Global’s dedication to providing high-quality, dependable, and inexpensive handsets and the business has quickly established itself as a prominent participant in the mobile phone market. HMD Global is well-positioned to continue growing and broadening its product portfolio in the years to come with a focus on innovation and customer happiness.

Why did HMD decide to Produce Nokia Phones in Europe?

HMD Global Oy (HMD), a Finnish technology startup, announced its collaboration with Nokia Corporation to produce phones under the Nokia name in 2016. The storied brand, which had previously dominated the market for mobile phones in the early 2000s, began a new chapter with this. However, a lot of people are unaware that HMD has a history of producing Nokia phones in Europe. We’ll examine HMD’s past and its choice to produce Nokia phones in Europe in more detail in this blog.

A Finnish technology business called HMD Global Oy was established in 2016. The business is focused on producing mobile devices and has its headquarters in Espoo, Finland. Its main objective is to produce Nokia-branded phones, and it has the sole right to use the Nokia brand.

However, HMD and Nokia have a long history that predates 2016. In actuality, HMD was first established in 2010 as a partnership between Foxconn, Microsoft, and Nokia. The organisation was known as HMD Mobile, and its main objective was to produce Nokia mobile devices.

At the time, Nokia was the leading producer of mobile phones in the world, but it was finding it difficult to compete with the emergence of smartphones. Market share for the business was falling, and it was being overtaken by rivals like Apple and Samsung. Nokia and Microsoft collaborated to create a new mobile operating system called Windows Phone in an effort to turn things around.

For $7.2 billion, Microsoft purchased Nokia’s mobile phone division in 2014. With HMD Mobile no longer existing, the joint venture between Nokia, Microsoft, and Foxconn was effectively terminated. Yet, HMD would benefit in the future from the knowledge learned from producing Nokia phones.

In 2016, a new company called HMD was founded, and it was given the sole licence to use the Nokia name for mobile phones and tablets. The company set out to revitalise the Nokia name and make it once again relevant in the mobile phone industry.

It was strategically wise for HMD to produce Nokia phones in Europe. The company was convinced that producing in Europe would help it reach its aim of producing the highest-quality goods possible. HMD also desired to assist local employment and the development of the European economy.

Salo, Finland, a town in the southwest of the nation, is the location of HMD’s production site. Nokia initially constructed the factory in 1989, and it produced mobile phones there until it stopped doing so in 2012. After acquiring the building in 2016, HMD extensively invested in modernising the facilities and equipment.

Currently, the Salo factory is a cutting-edge production facility with approximately 200 employees. The factory has the potential to produce millions of Nokia phones annually, and it employs cutting-edge production techniques and technology to guarantee the highest quality products.

Benefits of Producing Nokia Phones in Europe

1. High-quality production: HMD wanted to make sure that its phones were of the finest quality. Europe is known for producing high-grade goods. By producing in Europe, HMD is able to take advantage of the region’s cutting-edge manufacturing techniques and technology and guarantee that its smartphones adhere to the highest standards.

2. Faster time to market: HMD is better able to react swiftly to market developments and launch new products thanks to manufacturing in Europe. The business can benefit from shorter supply chains and quicker shipment periods, which can keep it one step ahead of its rivals.

3. Cost savings: Although labour costs in Europe are often higher than those in other regions of the world, HMD can save money by producing there thanks to cheaper logistics and transportation costs. This can assist the business in lowering its overall production costs and enhancing its financial performance.

4. Helping the European Economy: By producing in Europe, HMD can contribute to the continent’s economic growth and generate employment there. Almost 200 employees work at the company’s production facility in Salo, Finland, and HMD’s investment in the area promotes regional economic growth and development.

5. Brand association: By producing Nokia phones in Europe, HMD is able to link its brand to the excellence and innovation of the continent. This could contribute to improving public perception of the Nokia brand and making it


In conclusion, HMD made a wise strategic choice by choosing to revive Nokia and manufacture its phones in Europe. HMD has been able to build high-quality phones that satisfy the highest requirements by utilising the area’s cutting-edge manufacturing techniques and technologies. This has improved the impression of the Nokia brand and helped the company stand out in the congested mobile phone industry.

Also, by producing in Europe, HMD has been able to respond swiftly to market developments, launch new products more quickly, cut costs, and assist the European economy. These benefits have enabled HMD to maintain an advantage over the competition and solidify its position as a market leader in the mobile phone sector.

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