Feature phones were widely assumed to be in terminal decline. HMD disagrees. We spoke to Ravi Kunwar, VP and CEO, HMD India, APAC, Australia and New Zealand, about how the company is positioning itself for the year ahead, smartphone choices and the future of feature phones.
Ravi Kunwar, vice-president and CEO, India and APAC, HMD
How did 2025 turn out to be for HMD, given the fact that you are completing 10 years this year?
Last year marked nine years of HMD, starting on December 1, 2016. From an HMD India perspective, we crossed the 100 million phone sales milestone in 2025. Over the last nine years, we have connected with almost 100 million-plus consumers across Nokia and HMD brands.
We tapped into a very interesting space — the low-cost 4G feature phone segment — and introduced two new products. This was in response to the rapid expansion of 4G networks, including in remote parts of the country, where affordability is a challenge but people still want connectivity, entertainment, and education.
From a volume perspective, the biggest launch in the last couple of weeks has been the HMD 100 and 101. Around 40-45 per cent of the Indian feature phone market is priced below ₹1,000, and most brands, including us historically as Nokia and HMD, were operating above that price point. For the first time, that price point is possible for consumers with HMD 100 and 101.
We also introduced the first hybrid phone category in 2025 — the HMD Touch 4G. This phone is for people who want to be different, who probably own a high-end smartphone but want to disconnect at specific times while still staying connected.
The biggest innovation came with the HMD 5G, our first low-cost 5G smartphone priced below ₹8,999 with power-packed features.
Where do you see the feature phone market headed, and who is buying feature phones today?
Contrary to the popular perception that the feature phone market is declining, if you look at independent data from the last three years, the market has actually grown. It stands at around 55-60 million devices annually. Compared to about 150 million smartphones sold every year, feature phones still make up roughly 30-35 per cent of the market.
The primary consumption is in rural areas, driven largely by affordability. But in metros, there are multiple use cases. Among younger users, sometimes it’s a forced choice — if parents don’t allow smartphones, that’s the only option. I was in Kota recently, and while the charm of feature phones may be fading overall, many students deliberately choose Nokia feature phones to avoid distractions.
Feature phones are also mandatory in places like factories and military bases. Personally, if I want to detox over a weekend and not carry the burden of a smartphone, I would prefer to carry my Nokia 3210.
At the same time, digital connectivity is still important. That’s why we innovated to enable UPI on a ₹1,000 phone. With our 4G feature phone offerings, users can also stay connected to entertainment.
How do you see the feature phone market evolving in 2026?
Memory prices have skyrocketed, leading to an expected 15–20 per cent jump in smartphone prices. This will push smartphones further out of reach for many consumers.
That’s where feature phones and low-cost 4G feature phones will play a more dominant role. I expect this market to grow even in 2026, backed by innovation, affordability, and the fact that owning a smartphone — especially in the first six to eight months — will become more difficult.
How has the HMD-Nokia partnership evolved since its launch in 2016?
After nearly nine years of HMD’s existence, we continue to bring iconic Nokia devices to consumers. In 2024, HMD decided to become a multi-brand company. We will continue to bring Nokia feature phones while also identifying spaces where consumers seek different brand values, which is where HMD plays a strong role.
You will continue to see innovative Nokia feature phones launched in India and globally in 2026, alongside a strong HMD portfolio. As part of our multi-brand approach, we have collaborated with Mattel for the Barbie phone, Heineken, and FC Barcelona in select markets. However, the primary focus will remain on Nokia and HMD.
HMD Barbie Phone
Durability and repairability are strong brand pillars for HMD. How important is repairability in India?
Consumers are becoming increasingly conscious about sustainability and repairability. As HMD, we have been EcoVadis Platinum-rated for the fifth consecutive year based on our focus on repairability and sustainability.
While this does increase costs, in the long run it benefits the planet, which aligns with our values. We are also actively engaging with the government of India on the ‘Right to Repair’ policy framework. We believe consumers should have the right to repair, even if it increases costs.
Currently, we offer replacements during the warranty period for feature phones. On smartphones, we also provide access to materials and toolkits so consumers can repair devices themselves. While this is not yet commercially viable at scale in India, over the next three to five years, it could become an important consideration as consumer awareness grows.
What key technology trends do you see shaping 2026?
There are two parts — AI and device innovation. On the device side, foldables and even multi-collapsible screens could challenge tablets as a category. As technology matures and scale improves, prices will come down.
Satellite connectivity is another major area, especially as policy frameworks evolve in India. This could enable access beyond traditional networks. We may also see advancements in ultra-wideband eSIMs, quantum and AI-powered chips, and more sustainable manufacturing practices.
On AI, we will continue to see rapid progress. On-device generative AI will reduce dependence on the Cloud, enabling features like image editing, video reimagining, live transcription, multilingual translation, and scene recognition directly on devices. The scope of AI is far broader than what we can currently predict.
What are the key focus areas for the company in 2026?
First, we aim to achieve volume leadership in the feature phone segment through innovation. Second, we plan strong growth in the ₹10,000–15,000 low-cost 5G smartphone segment in India. Third, we see India as a hub for talent across testing, R&D, development, and supply chain.