But analysts do not see the Nokia 4G featurephone as an actual risk to the Reliance Retail gadget, given the pricing is means larger. HMD although stated it’s attempting to place the featurephone as a companion gadget for customers which can be already utilizing a smartphone as in comparison with Reliance Jio which, by way of the JioPhone, is concentrating on customers which can be experiencing information Companies for the very first time.
“It’s a very strong classic style story. This phone will help us differentiate in the market. It will be a companion phone to smartphone users, and possibly the only option available in the market,” Ajey Mehta, nation head-India at HMD Global, advised ET. “It, however, also targets feature phone users who are looking for premium experience while being connected.”
HMD Global’s 4G function phone, the brand new 8110, has been nicknamed the “banana” phone and is priced at almost Rs6,000, with a piece of free information bundled in for Jio subscribers. The JioPhone, however, is offered for as little as Rs 500 through varied provides whereas the upgraded model—JioPhone 2—is offered for lower than Rs 3,000.
“Nostalgia seems to be working for HMD as it continues to reboot its classics. It (the new Nokia 4G fearurephone) might be not about volumes but surely about strengthening the brand connect,” Tarun Pathak, affiliate director at Counterpoint, stated.
He, nonetheless, added that the pricing is excessive, and HMD is especially aimed toward strengthening join with the model moderately than chasing numbers.
Mehta, nonetheless, stated HMD is concentrating on sure volumes with the newest 4G function telephones, supported by the offline unique strategy, and advertising help.
“But, it won’t compare with our other feature phones that drive much larger volumes. It is going to talk a lot more about what Nokia Originals is about after 3310. There is a story there about Nokia,” he added.
HMD has additionally expanded its smartphone line up because the market enters the extremely anticipated festive season, which contributes a couple of third of the business’s annual income.
The firm is anticipating Three instances leap in gross sales through the festive or October-December quarter over July-August quarter.
“We have offers available across devices. We have telco offers, consumer as well as trade offers. We have a 360-degree approach to the festive season,” Mehta stated, including that the model will stay aggressive regardless of an intense competitors out there.
HMD had round 6% market share within the function phone section, and a couple of% share within the smartphone section within the July-September quarter, as per market tracker Counterpoint Research.
HMD can also be wanting develop its offline channel from 1,10,000 shops to 1,20,000 shops. It has 550 distributors below its offline channel community.
“The offline channel has worked well for increasing the product cycle for certain phones as compared to the online channel where the life cycle is getting reduced,” Mehta stated.