HMD Global, the Finnish company behind the Nokia (NYSE:NOK) mobile phone brand, launched its first smartphone manufactured in Europe today. The move comes six months after HMD Global announced its plan to transition some of its manufacturing to Europe to meet growing demand from enterprises for locally-produced hardware. The initiative is aimed at addressing security and sustainability concerns, with the company's manufacturing location in Europe initially kept under wraps due to security reasons.
The company has now confirmed Hungary as one of its European manufacturing locations. The first device produced is the limited edition 5G Nokia XR21. Only 50 units have been initially produced, with 30 going on sale through the Nokia phone store today. The smartphone, which was launched in a different consumer-grade guise earlier this year, is available in 'Frosted Platinum' in several European countries including the U.K., France, Germany, Austria, Netherlands, Belgium, Spain, Italy, and Finland. It carries a price tag of €699 (€1 = $1.0489).
In addition to these initial units, HMD Global plans to make a further 302 smartphones available under the "European Edition" branding soon, with a price of €649.
HMD Global emerged from Microsoft (NASDAQ:MSFT)'s unsuccessful acquisition of Nokia devices a decade ago. Since taking on the Nokia brand in 2016, HMD Global has largely focused on feature phones and budget smartphones. The brand value of Nokia has helped the company raise $330 million in funding from entities such as Google (NASDAQ:GOOGL), Qualcomm (NASDAQ:QCOM), and Nokia itself.
The newly launched Nokia XR21 is marketed for its durability and sustainability. It boasts "military-grade durability" and an IP69K rating indicating its suitability for industrial use-cases where there may be high-risk of dust, heat, moisture, and impact. The device is also made from 100% recycled aluminium.
It's worth noting that while the assembly takes place in Europe, the materials for the smartphone will still originate from other parts of the world, notably China. HMD Global's decision to bring manufacturing closer to home is primarily driven by security requirements from enterprises. The company transitioned its data centers to Europe in 2019 for similar reasons and conducts rigorous software and malware testing in Europe.
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