FIH Mobile revealed information on HMD Global’s (Nokia) business performance in the fourth quarter of last year. Some may not know the relationship between FIH Mobile and Nokia phones. When Nokia Finland announced its return to the smartphone market, the company partnered with a newly established startup, HMD Global has become a licensee for Nokia’s mobile phone brand, and FIH Mobile, owned by Foxconn, which exclusively manufactures new Nokia phones.
In 2019, HMD Global decided to implement a multi-ODM strategy, which means that more companies have signed contracts with the manufacture of new Nokia phones. For HMD and FIH Mobile, this is a financial factor. FIH Mobile owns about 10% of HMD Global and therefore also belongs to HMD Global’s ownership structure. This strategy, coupled with a growing focus on key markets, may prove HMD Global’s success in the fourth quarter of 2019. As FIH stated in its annual report, the above reasons helped HMD achieve its first profit (pre-tax) in the fourth quarter of 2019. The report mentions that HMD is still in the B round of financing and hopes to close the round in the first half of 2020.