HMD Global managed to squeeze a good Q4 2021 results
Nokia really did financially well in Q4 2021, and it seems that the licensee of their brand for phones and tablets also managed to score good business results. Strategy Analytics reports that the revenue of sold Nokia devices increased in Q4 2021, which is an 11% increase YOY. HMD Global achieved such a great result by increasing the average selling price of its devices by 32%, which is the largest ASP of Nokia devices in the last 2.5 years. Additionally, the increased selling price was followed by the highest increase in smartphone shipments since 2019.
Actually, HMD Global increased its smartphone shipments in Q3 2021, and almost all of the devices are affordable mid-range and entry devices with improved build quality and 5G connectivity.
By launching affordable smartphones and feature phones, HMD Global is planning on taking markets worldwide, especially the North American market, which has been a hardly achievable goal even for the old Nokia. However, the strategy of HMD Global is to become the top prepaid vendor in the US by striking contracts with numerous carriers and their subsidiaries.
Shipments and sales don’t always have to follow good financial results but it might help Nokia get some traction in North America since the latest phones do seem to be of better quality. However, everyone is waiting for a refined version of the Nokia 8.3 5G, which was the best Nokia phone announced after the Nokia 7 Plus. We’ll see if HMD can divert some of its profits for this device.
Big thanks to Tomislav for the tip 😉
