The launch of some new models was apparently extremely important for HMD Global recently, as the Finnish company is struggling with the steadily falling sales of its Android smartphones from the Nokia brand, according to statistics from market observers.
CounterPoint Research market researchers report, according to Nokiamob, that HMD Global sales of smartphones declined sharply again in the first quarter of the year. Compared to the same period in the previous year, the decline was 45.2 percent, although the first quarter is traditionally the lowest point of the year in terms of smartphone sales.
HMD was still able to sell 3.1 million units in the first quarter of 2019, from January to March 2020 it was only 1.7 million units. In addition to the weaker sales after Christmas in the first months of the year, there was apparently a general downward trend in customer interest in Nokia devices. Of course, HMD Global is also affected by the effects of the spread of the novel coronavirus.
However, the downward trend has been going on for a long time and started in the third quarter of 2019 – long before Corona. Apparently HMD has not been able to impress potential customers with the newly introduced smartphone models for a long time. However, the market has long been fiercely competitive in the favorable and medium price ranges, whereby the Nokia brand has to compete with competitors such as Oppo, Huawei, and above all Xiaomi.
For the company HMD Global, it is probably particularly difficult to compete with providers such as Xiaomi in terms of price-performance ratio. The second quarter of 2020 could bring even worse numbers for the company, as the new models, which a few weeks ago in the form of Nokia 1.3, 5.3, and especially Nokia 8.3 5G have been introduced, have only recently become available or not at all. In addition, Covid-19 is only now likely to have a massive impact on customer buying behavior in the Western markets that are so important to HMD.