HMD backed by Nokia faces constant decline in Pakistani market

ISLAMABAD: As the technological market in Pakistan is expanding, the Human Mobile Devices (HMD) mobile phones are facing constant rejection from the mobile enthusiasts in Pakistan.

According to the details, HMD Global’s smartphone venture under the Nokia brand has been facing significant challenges, leading to a decline in market share and financial performance.

While talking to Daily Ausaf, some users claimed that HMD mobile phones are not up to the mark and do not have features to catch up with the market trends. Other users stated that the mobile phones are overpriced as they offer outdated features.

Moreover, the mobile phone sellers stated that HMD smartphones are the least selling item in the market, due to which they have to face massive losses.

Despite the recent launch of HMD mobile phones, they have failed to attract users in Pakistan, which causes great concern for the company’s future in the Pakistani market.

While HMD continues to produce Nokia-branded feature phones and is launching its brand of smartphones, the overall market reception for HMD’s smartphone efforts has been lukewarm, with some analysts suggesting it’s more of an exit strategy than a growth plan. 

HMD experienced a substantial decrease in device sales, with 40 million devices sold in 2022 compared to 56 million in 2021, marking a 29% drop globally, according to the statistical data provided online.

As a result, the company has been slashing the prices of HMD mobile phones to attract young users. Even the top-priced smartphone models have also faced difficulty in pleasing the Pakistani audience.

Additionally, HMD reported an operating loss of 76.9 million euros in 2022, a stark contrast to the 12.9 million euro profit in 2021. While HMD still holds a significant share in the feature phone market, its smartphone market share has diminished.

It is important to note here that the deal between HMD and Nokia is going to end in 2026, after which HMD is set to launch its personal brand; however, Nokia still holds a 10 percent share in HMD.