HMD Global, the company behind the Nokia mobile phone brand, has launched its first smartphone manufactured in Europe. This move comes as a response to the growing demand from enterprises for locally-produced hardware to address security and sustainability concerns.
The decision to manufacture in Europe was first revealed by HMD Global six months ago. At that time, the company did not disclose the exact manufacturing location due to security concerns. However, it has now confirmed that one of its manufacturing facilities is in Hungary, although the specific location is still unknown. The company also announced plans to add manufacturing and assembly capacity in other European locales.
The first device manufactured in Europe is the 5G Nokia XR21, which offers a higher level of security assurance through customized software and security features for enterprise customers. HMD Global is also releasing 30 limited edition versions of the device to the general public in select European countries. Additionally, a standard edition of the European XR21 smartphone will be available for consumers.
HMD Global emerged after Microsoft’s Nokia devices acquisition in 2013. The company took on the Nokia brand in 2016 and has since focused on feature phones and budget smartphones. Its association with the Nokia brand has helped the company raise significant funding from various investors.
The decision to manufacture in Europe is driven by the need to meet the security requirements of enterprise customers. By manufacturing and testing the devices locally, HMD Global can ensure a higher level of security and have greater control over the entire production process. This move aligns with the company’s previous decision to shift its data centers to Europe.
It’s important to note that this manufacturing shift does not mean a complete transition from HMD Global’s existing manufacturing capacity in China and India to Europe. The company will continue to serve the Asian market and manufacture devices in those regions. The move to Europe is primarily to cater to specific demands from enterprises that prioritize sovereignty and localization.
By manufacturing smartphones in Europe, HMD Global aims to address the security and sustainability concerns of its enterprise customers. The launch of the Nokia XR21, assembled in Europe, marks a significant milestone for the company as it expands its presence in the European market and reinforces its commitment to meeting the specific needs of its customers.