Nokia's "Skyline": Brand Rebirth or Swan Song?

Nokia's "Skyline": Brand Rebirth or Swan Song?In August 2024, HMD released an Android smartphone called HMDSkyline, which may signal either the end of the Nokia brand in the mobile phone industry or a brand revitalization attempt by HMD.However, what truly grabs attention is not the hardware specs but the iconic design, dubbed by netizens as the "Lumia spirit successor

Nokia's "Skyline": Brand Rebirth or Swan Song?

In August 2024, HMD released an Android smartphone called HMDSkyline, which may signal either the end of the Nokia brand in the mobile phone industry or a brand revitalization attempt by HMD.

HMDSkyline utilizes the Qualcomm Snapdragon 7s Gen2 processor and comes in two storage configurations: 8GB + 128GB and 12GB + 256GB. It features a 6.55-inch FHD+ OLED display with a 144Hz refresh rate and 1000 nits peak brightness. In terms of hardware, HMDSkyline is considered a mid-range phone, but HMD priced it at $499, demonstrating its confidence in the product.

However, what truly grabs attention is not the hardware specs but the iconic design, dubbed by netizens as the "Lumia spirit successor." The phone adopts the signature capsule pillow design of the Lumia 800/Nokia N9, incorporating the metal frame design of the Lumia 1050. Moreover, HMDSkyline features a detachable design, allowing users to easily replace replaceable components like screens, back covers, batteries, and charging ports.

HMDSkyline shares a complex connection with Lumia and Nokia. To understand this connection, we need to revisit Nokia's journey to Windows Phone.

In 2011, facing the onslaught of new-generation smartphones like iOS and Android, Nokia decided to shift its smartphone business towards the Windows Phone operating system. This decision marked a close partnership between Nokia and Microsoft. At that time, Nokia wasn't averse to the Android ecosystem and there were even rumors that Nokia had approached Android. However, Stephen Elop, the then CEO of Nokia, a former Microsoft executive dubbed "the traitor" by fans, not only rejected the Android ecosystem but also abandoned the self-developed Meego operating system, fully embracing Windows Phone.

After fully shifting to Windows Phone, Nokia launched the Lumia series of phones. While the Lumia series received praise for its design and hardware, the Windows Phone operating system remained stagnant for years, failing to compete with iOS and Android in market share.

Ultimately, Nokia decided to sell its phone business, along with the Nokia and Lumia brand logos, to Microsoft in 2013. Microsoft continued to release Lumia brand phones, but their market performance remained unsatisfactory, ultimately leading Microsoft to discontinue Windows Phone development in 2016. The Lumia series came to an end, and the Nokia phone brand faded from the market.

However, the five letters "NOKIA" hold an unparalleled position in the hearts of global mobile phone users, and no one wants to see the brand disappear. In 2016, a group of former Nokia executives founded HMD and received a global exclusive license for phones and tablets from Nokia, enabling HMD to launch phones bearing brands like Nokia and Lumia, mirroring Microsoft's past actions.

HMD's primary mission was to join the Android ecosystem and establish a foothold in the smartphone industry. They quickly completed a product layout for high-, mid-, and low-end smartphones, attracting consumers with a clean Android system. Additionally, HMD continued Nokia's commitment to photography, releasing the Nokia 9 PureView, an audiovisual "flagship."

However, the Android industry in 2016 was no longer the same as in 2011. The rise of domestic Chinese mobile phone brands made the smartphone market competition extremely fierce, and HMD faced immense pressure from established brands like Samsung, Huawei, and Xiaomi. Simultaneously, mobile phone brands started focusing on phone systems, emphasizing differentiated experiences. Nokia Android phones under HMD's control continued to center around "near-native" as their core selling point, naturally lagging behind in competitiveness. Coupled with HMD Global's relatively conservative marketing investment and strategy in global markets, it failed to effectively enhance brand awareness and product recognition.

For a long time, the Nokia brand could only rely on feature phones with KaiOS.

The appearance of HMDSkyline signifies HMD's attempt to return to the smartphone market through innovation and differentiation. Although the phone's hardware configuration is average, its design and detachable components hold some appeal in the market. Additionally, in an environment where consumers are averse to "bloated" operating systems, the near-native system of HMDSkyline could attract some users.

Nokia under HMD's management has both successfully replicated classic models, like the famous "banana phone," and faced challenges and limitations in the smartphone market.

The story of Nokia and HMD offers several insights for the entire mobile phone industry. Firstly, Nokia's experience demonstrates that brand value lies not only in its history and heritage but also in its ability to evolve with the times and meet the actual needs of consumers. Brands that merely rely on historical status and past glory to generate income will be at the mercy of others once the environment changes. In a fiercely competitive market, innovation and differentiation are always crucial for brand survival and development.

Interestingly, domestic mobile phone brands like Gionee and Bird also went through brand management stages similar to Nokia. To leverage the remaining value of their brands, these brands mostly opted for direct brand licensing. There are always a few "takers" like HMD who want to "revive" the brand, but they remain a minority.

Whether HMD, after shedding the weight of the Nokia brand, can find a new path in the Android market remains to be seen. We will likely find the answer soon from the pricing on platforms like Xianyu (a popular Chinese second-hand marketplace).

The emergence of HMDSkyline marks a turning point for the Nokia brand in the mobile phone industry. Will it be a rebirth for the Nokia brand, or the opening chapter of its swan song? Can HMD reshape the Nokia brand through innovation and differentiation and return to the smartphone market? Time will tell.