What if the secret to a tech giant’s resurgence lay not in Silicon Valley or European capitals, but in the bustling streets and rapidly growing digital landscape of India? For HMD, the company behind the iconic Nokia phones, this isn’t a hypothetical question; it’s a resounding reality. Top executives at Human Mobile Devices (HMD) have recently declared India their largest market, not just for sales, but as a crucial hub for resources and a major contributor to their financial health. This revelation shines a spotlight on India’s pivotal role in the global mobile phone arena and offers compelling insights into HMD’s strategic focus. Could India be the very foundation upon which Nokia’s legacy is being rebuilt for a new generation?
In an exclusive interview, HMD Global Chairman and CEO Jean Francois Baril, along with HMD India and APAC VP and CEO Ravi Kunwar, didn’t mince their words about India’s significance. They affirmed that the country stands as the number one contributor to HMD’s financials and resources worldwide. This isn’t just about the sheer volume of phones sold; it’s a deeper integration of India into HMD’s global operations. With nearly 200 employees based in India and several key global functions operating from here, the nation’s talent pool and infrastructure are deeply embedded in the company’s structure.
Baril expressed immense optimism about India’s trajectory, stating, “India is our number one country, in terms of numbers…in terms of resources. If I see the dynamics of India in the past few years, it’s just spectacular.” 1 This sentiment reflects the remarkable growth and dynamism observed in the Indian market, a factor that hasn’t gone unnoticed by global tech players.
The commitment to India goes beyond just setting up offices. HMD has made significant strides in local manufacturing. Kunwar proudly announced that almost 100% of the products sold within India are manufactured within the country. This not only aligns with the Indian government’s “Make in India” initiative but also demonstrates HMD’s dedication to contributing to the local economy and creating employment opportunities. By partnering with Electronic Manufacturing Services (EMS) providers, HMD has optimized its production capacity to meet the demands of the vast Indian market. Furthermore, India serves as a strategic export hub for HMD, showcasing the country’s growing importance in the global supply chain.
This strategic emphasis on India comes at a time when the global smartphone market is witnessing interesting shifts. While India’s smartphone market experienced a 4% growth in 2024, the revenue soared by 9%, indicating a rising trend towards premium devices. However, a significant portion of the Indian mobile market still comprises feature phone users, a segment where Nokia has historically held a strong position. Recognizing this, HMD recently launched two new music-focused feature phones, the HMD 130 Music and HMD 150 Music, specifically targeting this segment. These affordable devices, packed with features like a long-lasting 2500 mAh battery, Bluetooth 5.0, Type-C fast charging, and even UPI payment capabilities, demonstrate HMD’s understanding of the unique needs and preferences of Indian consumers.
Moreover, HMD is gearing up to tap into the burgeoning 5G market in India with the upcoming launch of an entry-level 5G smartphone. With 5G smartphone shipments in India witnessing a massive surge in 2024, accounting for 79% of the total smartphone shipments, HMD’s move to introduce an affordable 5G option could be a game-changer in capturing a larger share of this rapidly expanding segment.
The connection between HMD and India isn’t just about business; it’s also about cultural integration. The recent announcement of HMD extending its partnership with the Rajasthan Royals as their official smartphone partner for the Indian Premier League (IPL) 2025 further exemplifies this. IPL is not just a cricket tournament in India; it’s a cultural phenomenon that unites millions. By associating with a popular team like the Rajasthan Royals, HMD is aiming to deepen its connection with the Indian audience and build stronger brand recall.
The reasons behind India’s paramount importance to HMD are multifaceted. Firstly, the sheer size of the Indian market, with its massive population and increasing mobile penetration, offers unparalleled growth potential. Secondly, India boasts a young and tech-savvy population that is increasingly embracing digital technologies. This creates a fertile ground for smartphone adoption and usage. Thirdly, the availability of skilled talent and a supportive government ecosystem for manufacturing make India an attractive destination for companies like HMD to set up and expand their operations.
Consider the story of Ramesh, a small business owner in rural India. For years, he relied on a basic feature phone for communication. With the advent of affordable smartphones and increasing digital literacy, he recently upgraded to a Nokia smartphone. For Ramesh, it wasn’t just about owning a new gadget; it was about accessing new opportunities – online banking, e-commerce, and staying connected with family and friends through social media. Millions of such stories across India are fueling the growth of the mobile phone market and making it a goldmine for companies like HMD.
The financial implications of India’s success for HMD are significant. As the largest market in terms of contribution, India’s sales directly impact HMD’s revenue and profitability. The local manufacturing also helps in optimizing costs and offering competitive pricing, which is crucial in the price-sensitive Indian market. Furthermore, the resources and talent pool in India contribute to HMD’s global innovation and product development efforts.
Looking ahead, India will likely continue to be the cornerstone of HMD’s global strategy. The company’s focus on local manufacturing, catering to the specific needs of Indian consumers with both feature phones and affordable smartphones, and its strategic partnerships indicate a long-term commitment to the market. The success in India could very well pave the way for HMD to strengthen its position in other emerging markets and solidify its comeback in the global mobile phone industry.
So, is India the secret behind Nokia’s comeback, orchestrated by HMD? The evidence strongly suggests so. India’s massive market, its wealth of resources, and its significant financial contributions have made it the undisputed king for HMD. As the company continues to invest in and innovate for the Indian market, we can expect to see further growth and a stronger presence of Nokia-branded phones in the hands of millions across the country. The future of HMD, and perhaps the enduring legacy of Nokia, appears to be intricately linked with the vibrant and ever-evolving landscape of India.
