The news that the mobile phone giant Nokia returned to the smart phone market, let the Finnish company HMD Global Oy (hereinafter referred to as HMD), which has obtained the brand authorization from Microsoft, is under the spotlight. The startup recently announced that Nokia's smartphone brand is officially launched and plans to release its first next-generation Nokia smartphone in the first half of 2017. For HMD, the deal with Microsoft is reasonable. Six months ago, they signed a strategic licensing agreement with Nokia to obtain the exclusive use of the Nokia brand for 10 years on mobile phones and tablet products. Get brand authorization for Nokia smartphones. Nowadays, the mobile phone market is a strong enemy, and there are not many opportunities for Nokia to turn over. After a brief excitement, Nokia fans expressed doubts about how far the brand can return, and the industry is also in a "not optimistic" voice. In fact, the business logic of a company is much more complicated than we understand it. Because in this transaction, the protagonist is neither Nokia nor HMD, but Honghai Fuzhikang, who is responsible for product design, production and sales. The founder of HMD is "Honghai Laochen" The HMD Global team is headed by CEO Arto Nummela and President Florian Seiche. Both of them were former Nokia executives who were replaced by fakes. This team background is exciting for Nokia fans. However, it should be noted that the “return†is more about the brand than the product. Many technologies such as CBD, PureView, and Zeiss exclusive certification that have made many promises are sold to Microsoft with the mobile phone department. The map service of Here is sold to Audi in Germany, and the mix-radio is sold to line, Nokia. Accounts and Nokia stores have been handed over to Ou Peng opera. From a product perspective, it is difficult to find the shadow of the past in the new Nokia mobile phone. The industry believes that in this transaction, more focus should be placed on Honghai Fu Zhikang, not Nokia and HMD, compared with the latter two, Fu Zhikang is the most profitable party. An interesting detail is that HMD Global, the founder of HMD, is called Chen Weiliang, who served as chairman of Hon Hai's Foxconn International (later renamed "Fuzhikang"). In the early years, Chen Weiliang, who had a good relationship with Nokia, had brought a large number of Nokia orders to Foxconn. First attack function machine, and then seek intelligent machine The cooperation of Nokia's brand authorization involves Nokia mobile phone brand, Microsoft, HMD, Fuzhikang, Microsoft authorized Nokia mobile phone brand to HMD, Fuzhikang and HMD agreement become Nokia smartphone manufacturer and access to HMD Research and development resources. This new type of cooperation continues the cooperation between the two parties on the functional machine. In May of this year, Fu Zhikang got the design, manufacturing, sales and related accessories of Nokia's feature phones from Microsoft for US$350 million. At the same time, Hon Hai will also receive Microsoft's Vietnam Mobile Phone Division in Hanoi, Vietnam, which not only has a main function machine business, but also a smartphone manufacturing business. Fu Zhikang was previously one of the foundries of Microsoft mobile phones. In the first half of this year, Fu Zhikang announced that it will participate in the manufacturing, research, development, technical cooperation and distribution of Nokia branded smartphones and tablets in the future. At that time, Fu Wenkang’s chairman, Wen Wenxin, accepted an interview with the media and said that in addition to feature phones, smartphones will enter the end of this year and early next year. One unavoidable fact is that Fu Zhikang will become a new synonym for Nokia in the next decade. The real protagonist is Fu Zhikang Compared to Microsoft's $5.45 billion (equivalent to $5.8 billion) to buy Nokia, Fu Zhikang's two businesses are not only costly, but also strategically long. In the era of feature machines, Nokia is the global hegemon. Even today, things are wrong, in the functional machine market, Nokia's share of more than a quarter of the world. On average, Nokia's feature machine shipments can reach 100 million units per year. Especially in emerging markets such as the Middle East, Africa, Southeast Asia, India, etc., functional machines still have a large market share. For example, the Indian market, which is loved by domestic mobile phone manufacturers, according to the Q3 report released by IDC, the total shipment volume of the Indian mobile phone market reached 72.3 million units, and the number of feature phones was 39.9 million units, even though the feature phone market shrank 12.4% compared with the same period last year. But still occupy half of the Indian market. "Although there is meat on the bones, the functional machine is a sunset industry. The Taiwanese mobile phone manufacturers including Fu Zhikang and Asus are still trying to make a difference in the smart phone market. Nokia is an opportunity." Chang Wang Yanhui said. However, mature markets are strong and strong, and Fu Zhikang is less likely to have a positive impact on the mobile phone market in Europe, America and China. Wang Yanhui believes that Fu Zhikang's production of Nokia mobile phones is aimed at some emerging mobile phone markets such as Africa and Southeast Asia. "These countries are still in the midst of the transition of functional machines to smart phones. The market is relatively chaotic, and Nokia's entry threshold is not high. Coupled with the sales channels of Nokia, Fu Zhikang has reduced the difficulty of opening these markets." Informed sources broke the news that Nokia's first smartphone after returning to the market was called "D1C", equipped with Android 7 system, equipped with Snapdragon 430 processor, 1080p screen and 3GB RAM. This model is positioned for the Android entry model and is ideal for entering the market in emerging markets. Compared with the brand, Fu Zhikang is more concerned about the channel. The acquisition of Nokia is an extension of Hon Hai Group's supply value chain. From the hardware manufacturing in the factory to the design, sales and service value outside the factory, Fuzhikang's access to Noah's channel is an important strategy for completing the last few miles of the value chain. "(Functional Machine Business) transaction case is the manufacturing, sales and distribution department of Fuzhikang's acquisition of Microsoft's mobile phone business. For Hon Hai, it can immediately obtain sales of Nokia's sales team and distribution department in 40~50 countries and regions around the world. Platform and channel. Since this sales channel team has hundreds of people, it provides a fairly complete and professional team for global channel deployment and operation,†said Tong Wenxin, Chairman of Fuzhikang Group. “Buying Nokia is equal to Fuzhikang Group. The market sales platform and channels. This is a big step for the Honghai Fuzhikang Group Transformation Service Technology Company. It is only a step away."
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