Nokia is worth a billion, but that does not make them successful

By admin On May 23, 2018

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Nokia has been back on the mobile market for two years, but now Nokia is only a name. HMD, a company from Finland, then bought the name and yesterday they announced that they are now worth more than a billion, after they raised 100 million from investors. That is quite a bit of a startup, but that does not mean that they are already making a huge profit.

The opposite even: HMD made a loss of 65 million last year on a turnover of 1.8 billion euros. Well, that is still not bad for a company that is still in the start-up phase, but it is helped by the many ex-Nokia employees who are in HMD. There is a lot of turnover, because the CEO who co-founded the company was replaced last year.

Feature phones

Nokia sells five different smartphones and three so-called ‘featurephones’ like the from the grave resurrected Nokia 3310 . They can not do as much as a smartphone, but they are cheap and there are plenty of markets that are still waiting for those kinds of phones. Of course it also helps that the classic Nokia designs still appeal and certainly trigger a kind of strange nostalgia in the older generation.

Smarter

So everything seems fine. HMD plans to invest a lot of money in marketing, so that they can play on the world stage when it comes to smartphones. Their proposition is not much different from that of a OnePlus: making good and beautiful looking Android phones that do not cost too much.

The phones are selling very well: Nokia has sold 50 million phones in 2017, although insiders say that on the feature phones not too much is earned and the company actually has to sell at least 50 million smartphones in order to profit to be able to make. Nokia may then reign with their ‘stupid’ phones, but if they want to keep on surviving and realize the value they have, they have to sell smartphones quickly, and a lot too.