Thursday 28 Mar 2024
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Nokia, the storied mobile phone brand of the nineties and early 21st century, is in the midst of an audacious global comeback. Having initially cornered the global mobile phone market with its Scandinavian design aesthetic, Nokia is now pairing that with the ever-reliable Android OS.

The company is betting that this will help the brand stand out in the crowded devices field. While it is certainly an uphill challenge, Nokia’s Finnish brand owner HMD Global Oy has come out swinging since the brand kick-started operations in 2016.

HMD Global went on to develop and release a total of 11 models in just 11 months. That product line has since expanded and the phones are gradually being made available throughout the world.

"The partnership we’ve formed with both redONE and Macpie Distribution will go a long way towards establishing a foothold in Malaysia" — Vijay Thangavelu

HMD Global is just getting started. The company recently announced a US$230 million investment close. The investment was secured from technology giants Google, Qualcomm, as well as Nokia’s consumer subsidiary, Nokia Technologies. HMD Global made the announcement in early August.

Nokia is now back on Malaysian shores, with a number of sleek new models being distributed by Macpie Distribution Sdn Bhd. Rounding off the comeback effort is local mobile virtual network operator (MVNO) redONE Network Sdn Bhd.

“This tripartite partnership was formed to deliver Nokia’s best consumer experience possible, by offering affordable device bundles with the best redONE telco plans, through an efficient distribution network,” says HMD Mobile Malaysia Sdn Bhd country manager Vijay Thangavelu.

As part of Nokia’s global comeback, HMD Global is banking on an ambitious 5G strategy, including in Malaysia. According to Vijay, HMD Global is well and truly in the 5G space and is committed to bringing to market a range of sophisticated and future-proof devices.

“We view this as an exciting opportunity to make cutting-edge technologies more available to the masses. We hope to eventually bring a more affordable 5G experience to this market.

"We are committed to the growth of the Nokia brand in Malaysia, by making its devices accessible to consumers from all walks of life" — Sean Ng

“The partnership we’ve formed with both redONE and Macpie Distribution will go a long way towards establishing a foothold in Malaysia, so that our devices will be available for Malaysian users by the time the local 5G network is up and running,” he says.

HMD Global is in the midst of creating a truly seamless experience in terms of mobile network, distribution excellence and future-proof smartphones. In fact, the company recently announced its first 5G device for the European market. Vijay is excited about Nokia’s prospects once Malaysia achieves full 5G network readiness.

The Nokia 8.3 5G is the company’s maiden 5G-enabled device. Powered by the bulletproof Qualcomm Snapdragon 765G Modular Platform, it has been built specifically with cost, usability and future-proofing in mind.

According to Vijay, the Qualcomm 5G solution enables the phone to condense more than 40 different radio frequencies into a single module. “In addition, the Nokia 8.3 5G smartphone features the highest number of 5G new radio bands, starting at 600MHz all the way up to 3.8GHz. We’re also planning to roll out other 5G devices, while continuing to strive for affordability, so everyone will be able to enjoy the high speeds and low latency of 5G networks,” he adds.

In addition to individual users, Nokia is committed to providing solutions for Malaysia’s enterprise segment. To this end, Nokia devices come with Google’s Android Enterprise Recommended (AER) certification.

"Given [Nokia’s] current and planned device portfolio, however, we believe they are on track to become a major player once again, and we want to share in their success" — Farid Yunus

AER is an initiative led by Google that helps enterprise customers deploy Android devices throughout their businesses with little to no friction. In this regard, only the best Android-enabled devices are given the coveted AER certification, which marks these devices out as being particularly compatible and secure for large-scale deployment within an enterprise.

“AER certification will be a strong value proposition for Nokia’s range of smartphones for the enterprise segment. There is a Nokia device at every price range, so enterprise-level security for mobile devices will no longer have to come at a huge cost,” Vijay says.

Meanwhile, for Macpie executive director Sean Ng Chee Heng, the opportunity to bring such a revered technology brand back into Malaysia proved too irresistible to pass up. A long-time specialist in ICT supply chain management, Ng says the company has a range of strategies to propel the Nokia brand name to the level of other competitor brands.

In addition to the sheer name recognition of this legendary brand, it now comes with the Android OS. As a result, the overall quality and value proposition of Nokia smartphones have grown by leaps and bounds, both in terms of software quality and security. This will be a strong pull to both new users and existing fans of the Nokia brand.

In fact, Ng says, the brand still commands fierce loyalty from a segment of Malaysian consumers. “This is very encouraging for us, and we are looking forward to serving these and other customers by making Nokia’s range of new phones available through our channel partners. We are committed to the growth of the Nokia brand in Malaysia, by making its devices accessible to consumers from all walks of life.”

Vijay adds, “With their extensive experience in supply chain management and coverage, we believe they can deliver the growth that we need here in Malaysia. We believe they are going to support our efforts to deliver our current and future device portfolios to the masses both quickly and efficiently.”

Consumer demographics have changed considerably since Nokia was last in the market. These shifts, however, play into Nokia’s long-time value proposition: Providing flagship quality devices at very attractive prices.

“Today’s consumer is looking to reduce the overall cost of owning smartphones. They are seeking the highest spec phones at the best possible price points. These demands, however, are not always satisfied by the current crop of device manufacturers. Our range of mobile devices, coupled with superior distributorship capabilities and a highly affordable series of telco plans, ticks all the right boxes for consumers,” Vijay says.

redONE CEO Farid Yunus is bullish on the brand’s ability to once again become a force to be reckoned with. “Nokia retains a leading position in terms of brand awareness, even if they are not presently the dominant force in mobile devices. Given their current and planned device portfolio, however, we believe they are on track to become a major player once again, and we want to share in their success.”

For Vijay, the partnership with redONE makes sense, given the company’s reputation as a fast-growing MVNO in Malaysia. “With their extensive 4G network coverage and 5G network in the pipeline, we believe they are a great partner to work with, in order to introduce our affordable range of 4G and 5G devices in the future,” he says.

Farid says redONE’s online purchasing and delivery channel will be a strong complementary service to Macpie’s well-established physical distribution network. In this regard, the Nokia brand will see the maximum possible distribution potential, both online and offline.

According to Farid, the biggest shift in recent years has been the move to online sales and courier delivery. “For our part, redONE has adapted to this shift by offering customers the option of buying via our redMALL portal (www.redmall.redone.com.my).

“Having said that, physical dealerships continue to play a big role when it comes to moving devices in volume. In our experience, customers don’t always know what they want, so recommendations and assistance by physical dealers remain an important factor in brand selection,” he says.

redONE will be offering two prepaid bundles for users to choose from. The first will entail an upfront payment of just RM498, for which customers will receive the Nokia C2, a 4G LTE smartphone, as well as RM30 prepaid credit monthly for 12 months. Meanwhile, the second bundle will provide users with the Nokia 106, as well as RM30 credit a month for six months, all for an upfront payment of just RM198.

“We are looking to roll out these bundles by mid-August, depending on prepaid system readiness and availability of stock,” Farid says.

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