Deciphering Nokia's return: What have they done and what are they?

Nokia has a proud history of making high quality phones that fit the needs of its customers. Then they missed the trend of smartphone integrated touch screen, and then the brand collapsed.
Attempts to release Microsoft's Windows Phone have also failed. However, since being taken over by HMD Global, Nokia is showing a strong comeback in both the smartphone and the basic phone segment.

Counterpoint has analyzed the market to find out the main reasons for Nokia's spectacular return in more than a year and provide the following report:

1. Meet the demand for universal phones
HMD is very fortunate to take over the basic Nokia unit that Microsoft has stopped investing and inherited about 10 million inventory.

Although smartphones are very popular, there are still many users who are not ready or need to upgrade to smart phones, especially with smartphones.

Some countries in Africa, such as Nigeria, face economic recession due to declining demand for natural resources. As a consequence, the exchange rate affects the price of imported goods, including smartphones. Rising prices lead to low purchasing power, and so users return to basic phones.

At the same time, the delivery of production to an experienced company in this field is Foxconn to help Nokia continue to maintain the quality of products that have become the brand. Thus, the return of Nokia has solved the demand for high quality basic phones.

In addition, Nokia has made an excellent decision to innovate the "legendary" phone 3310. With the influence created in the past and the modern changes that Nokia made, 3310 achieved Great success in markets where smartphones thrive

All these factors helped Nokia become the largest mobile phone provider in 2017.

2. Smartphone: Focus on quality and user
HMD recognizes that they can not compete on price / performance ratios with rivals like Xiaomi. Therefore, the company focuses on building beautiful designs combined with useful software features to represent the Nokia brand.

At the same time, the company is committed to support software updates in the shortest time (Nokia 8 is now running Android 8.1 Oreo, only Google's Pixel phone - the Android developer is the owner of the same version).
Some viral videos like Nokia 6 to break walnuts also help improve the quality of Nokia phones and bring the brand image deep into the minds of consumers.

3. Quickly expand the retail segment, popular with many users
Within a year, HMD has established operations in 70 markets with more than 600 direct service suppliers and distribution partners selling equipment at 250,000 retail outlets worldwide.

By 2017, the company has sold its products in 170 markets. Sales channels developed for the basic phone originally provided a solid foundation for boosting smartphone sales.

According to HMD, two thirds of Nokia customers are under 35. This is a sign that Nokia has succeeded in reaching out to young people through branding activities and not just to older users who tend to be nostalgic about old Nokia phones.

The company cautioned Nokia "version 2.0"

Nokia has sold more phones in India, Asia-Pacific (excluding China), Middle East & Africa with CAGR of 40%, 25% and 21% in 2017 respectively. In addition, Nokia smartphones are also well received in European countries.

With strong growth momentum shortly after its comeback, Nokia is showing that it is possible to return to its heyday.

Have you used a Nokia phone "version 2.0" or not? If so, please share your feelings about "her" through the comment section below.