After pulling out of the US smartphone market due to an unsustainable business environment and intense competition, Finnish handset maker HMD has redrawn its global strategy around three pillars: the Indian market, its HMD Secure business targeting government and security-critical customers, and its Softlock solutions business.
The company said India remains its top global priority, where it is doubling down on the mass market with 5G smartphones priced under Rs 10,000 and entry-level 4G devices in the Rs 1,000–Rs 2,000 range.
“It was clear from our chairman’s note—the rules of the game in the US and the intensity of competition don’t make it viable for a sustainable business model. As part of our strategy, we’re now focusing on three key verticals: secure devices, our Softlock solutions business, and markets like India where we already have a strong base. India continues to be our top priority market globally,” said Ravi Kunwar, vice-president & CEO, HMD India and APAC, in an interview with Moneycontrol.
Kunwar said the brand resonates most strongly with Indian consumers in the affordable smartphone segment. “For the mass general market, our focus would be sub-Rs 10,000 and up to Rs 15,000, because we believe the natural association of our brand and the consumer is within that segment,” he added.
On Thursday, the company launched the HMD Vibe 5G at a festive offer price of Rs 8,999, alongside two feature phones—the HMD 101 4G and HMD 102 4G—priced at Rs 1,899 and Rs 2,199, respectively. All new devices come with a one-year replacement guarantee for manufacturing defects. HMD expects the Vibe to clock sales in the “hundreds of thousands,” though actual uptake will determine the volumes.
With India’s smartphone market projected to grow modestly this year, Kunwar noted that more brands are now turning their attention to the sub-Rs 10,000 price band, particularly in tier-2 and tier-3 cities where first-time and budget-conscious buyers dominate.
HMD already holds about 10% share of India’s feature phone market, which accounts for 13–15 million units annually. In smartphones, Kunwar said the company is aiming for higher growth in sales than last year.
While the immediate push is for affordable, high-volume devices, HMD also plans to expand into the premium smartphone category in India with its Fuse and Secure series, priced upwards of Rs 35,000–50,000.
The Secure business will target enterprise customers with privacy-focused devices and software solutions, with India-specific announcements expected next year. The company is open to collaborations with government bodies and has structured teams both locally and internationally to support future deployment, while also preparing for compliance with regional regulations.
HMD has partnered with British cybersecurity firm SafeToNet to integrate AI-driven child protection features into the Fuse device, which is currently available in the UK.
Kunwar also said the company is exploring the export of its made-in-India sub-Rs 10,000 5G smartphones to the Middle East and Africa, if the business case and geopolitical conditions align.
“We have been exporting feature phones and some smartphones to these regions. This product (HMD Vibe 5G) is primarily designed for India, but we can always take it global if needed,” he said. “While geopolitical complexities pose challenges, we remain poised to scale exports should conditions permit.”
The brand has also begun working with Micromax’s Bhagwati Products to manufacture feature phones in Noida.Separately, HMD is readying its handsets for trials of the upcoming Direct-to-Mobile (D2M) service, expected in the next 4–6 months.
HMD’s D2M initiative involves a partnership with FreeStream Technologies, Tejas Networks, and other collaborators to launch a new generation of mobile phones in India that can receive broadcast content directly on the device without requiring Wi-Fi or mobile data. The technology will enable delivery of live TV, video, audio, and SMS alerts, using existing broadcast airwaves and Saankhya Labs’ SL-3000 chipset.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
