HMD Global Becomes First Major Phone Brand to Manufacture Smartphones in Europe

HMD Global, a Finnish mobile phone maker, has made plans to begin producing smartphones in Europe. The business that manufactures handsets under the Nokia name will assemble its 5G devices there. Previously, Foxconn, a Taiwanese manufacturing partner, helped HMD build devices. The smartphones were produced across Asia, particularly China and India, under the Nokia brand.

As big corporations like Apple and Samsung manufacture their smartphones in Asia to reduce costs, this will be Europe's first extensive smartphone manufacturing facility. Reuters reports that HMD has stated that its first European model, which is headquartered in Hungary, is intended for business clients.

Which Nokia phones are to be made in Europe?

The Nokia XR21 European Edition will start at €649, or £549, according to the company. These smartphones are now available for purchase. HMD also announced that there will be a limited edition of 30 units of the European product line in a matte platinum finish, which can be purchased from the company's website starting at €699 or £599.

Jean-Francois Baril, Founder, President and CEO of HMD Global, said: "We are pleased to launch the Nokia XR21, our signature robust 5G mobile phone, in Europe. We are committed to investing in security, technology and manufacturing processes that make our equipment safer and more robust," the agency said.

In March, the company announced that it would begin production in the European Union. The EU also encouraged companies to set up production in key sectors such as semiconductor manufacturing.

Why is HMD making Nokia phones in Europe?

The first Nokia 5G models produced in Hungary are aimed at customers who are sensitive to data security. According to the company, these European models are intended for business customers who wanted additional security with IT security partners.  The company already stores data in the European Union. Consumer and corporate data for all HMD mobile phones has been stored and processed on servers in Finland since 2019. 

In 2016, the company signed an exclusive 10-year license agreement with Nokia Oyj. Which was once the world's largest telephone manufacturer. The company agreed to manufacture Nokia-branded smartphones and tablets.