Nokia’s presence in the smartphone market is overshadowed by more successful brands like Samsung, Xiaomi, Oppo, and several others. The company’s last flagship phone came out in 2021, but it failed to capture the market like its budget phones or feature phones.
For that reason, the head of Nokia’s parent company, Adam Ferguson, has announced that the brand is pulling out from the flagship market. During an interview with Android Authority, he said that “Making an $800 phone doesn’t make sense for us at the moment”.
Instead, Nokia will start focusing more on its core business for now, which are entry-level smartphones, mid-range smartphones, and feature phones. Nokia wants to be known as the company that provides phones with years of lifespan, long-lasting batteries, and affordable price tags. The company also announced extended warranty plans in some markets recently.
In fact, the company’s change of strategy is working. Nokia recently celebrated its first full year of operational profit. The brand has been profitable since Q3 2021 and Q4 2021 was the company’s most successful quarter in history.
Moving forward, HMD Global has ambitious plans for Nokia. It wants to make Nokia the number 1 name in the US for pre-paid smartphones by the end of 2022. The company also wants to experiment by splitting its services into different divisions including a separate wing for business users.