Nokia and HMD Extend Licensing Deal for Feature Phones

Nokia has extended its licensing agreement with HMD Global by two to three years, ensuring the sale of Nokia branded feature phones. HMD exports Nokia mobile phones from India and China, where India is the biggest market for Nokia feature phones. This deal safeguards Nokia's brand presence and provides operational continuity for both companies.

Nokia has extended its licensing agreement with HMD Global by two to three years, ensuring the continued sale of Nokia-branded feature phones. This move underscores Nokia's commitment to maintaining its brand presence and operational continuity, particularly in the lucrative Indian market. The agreement extends HMD's ability to export Nokia mobile phones from India and China, where India remains the largest market for Nokia feature phones.

The extension of the licensing agreement is a strategic move for both companies. It not only secures Nokia's brand presence in the feature phone market but also provides operational stability for HMD Global. This deal comes at a time when HMD is expecting a significant increase in smartphone sales, driven by its new Vibe 5G model priced under Rs 10,000 HMD Vibe 5G: Doubles Smartphone Sales Target^[1].

HMD Global's Vibe 5G, priced at Rs 8,999, is the first smartphone from the company to be priced under Rs 10,000. The device is expected to double HMD's smartphone sales this fiscal year. The company also plans to launch the HMD Fuse, a smartphone designed to control children's internet exposure, and two new feature phones, HMD 101 4G and HMD 102 4G, priced at Rs 1,899 and Rs 2,199, respectively HMD Vibe 5G: Doubles Smartphone Sales Target^[1].

Nokia's strategic partnership with HMD Global also extends to defense technology, as demonstrated by the successful integration of Nokia's military-grade 5G solutions into Lockheed Martin's 5G.MIL® Hybrid Base Station (HBS). This integration enhances the interoperability of commercial 5G connections with military communications systems, providing decisive information for national defense Lockheed Martin, Nokia, and Verizon Advance Defense Capabilities Through 5G.MIL® Collaboration^[2].

The extended licensing agreement highlights Nokia's ability to adapt and thrive in different market segments. By maintaining its brand presence in feature phones and exploring new opportunities in the smartphone market, Nokia is positioning itself for continued growth. This strategic move also underscores the importance of operational continuity and brand presence in the competitive mobile phone market.