Google and Qualcomm among HMD Global investors to present an affordable Nokia 5G phone in 2020. HMD Global claims that the $230 million it has raised from companies like Google and Qualcomm will go towards powering 5G and expanding into the markets of Brazil, Africa and India.
While 5G continues to be an exclusive quality of mobile phones of the highest ranges and some premium mid-range, Nokia (owned by HMD Global) intends to break with this dynamic and opts for a more affordable 5G compatible phone. This is one of the objectives in which it will invest the capital it has received from large technology companies.
The list is long, but among the names of Google and Qualcomm that have participated in this multi-million dollar investment, HMD says it is the third largest funding round in Europe so far this year. With the 230 million dollars they promise not only to bring a more affordable 5G mobile, but also to boost their software business and become a provider of comprehensive mobile services within and outside Europe.
The firm based in Espoo, Finland, has explained that its phones with 5G networks will also be sold in the United States with the association of local operators. Manufacturing has been handled by Foxconn since it reached an agreement with HMD to buy Nokia in 2016. HMD says it has sold 240 million phones to date.
While the Huawei veto extends to more countries and if this situation is not reversed, it could be an opportunity for HMD Global that would now have the support of Google and Qualcomm to promote the use of 5G networks in various markets around the world, for one hand selling cheap phones and secondly becoming a mobile service provider.
The services market currently has a greater growth than that of hardware and that is why it is part of the strategy that the Finnish company wants to implement with this financing. It will invest in markets with strong competition such as Europe, but also in growth markets, expanding its reach to Brazil, India and Africa.
Before announcing this funding, HMD launched HMD Connect, an international data roaming service, in early 2020. It has also wanted to enhance its cybersecurity services with the purchase of assets from Valona Labs.
HMD Global is not the only one that knows the potential of the first phones with 5G chips that offer more modest prices. LG recently announced that before the end of the year it will introduce a terminal compatible with the new generation of wireless networks at an affordable price to bring its highest transmission speeds to the masses.
