HMD Expands Focus on Device Financing, Feature Phones and Local Assembly in Pakistan

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HMD executive Sanmeet Singh Kochhar discusses Pakistan’s affordability challenges, device financing, local assembly and the future of Nokia feature phones.

HMD Global continues to regard Pakistan as a key market, with the company focusing on affordable devices, financing options, stronger retail distribution and feature phones as it responds to the country’s distinctive mobile landscape, according to Sanmeet Singh Kochhar, HMD’s vice president for Asia, the Middle East and Africa.

In an exclusive conversation with PhoneWorld, Kochhar said Pakistan has become one of HMD’s stronger-performing markets across the regions he oversees. He said the company has strengthened its position particularly in the 2G feature phone segment, while also expanding the HMD brand and maintaining its Nokia device portfolio.

Kochhar said affordability has become a central part of HMD’s strategy in Pakistan. The company has increased its focus on device financing because many consumers face difficulty paying the full cost of a smartphone upfront. He also pointed to a stronger retail footprint, particularly in northern Pakistan.

On local production, Kochhar said HMD has had two local assembly facilities operating in Pakistan for several years and is exploring options for further expansion.

Asked about the future of the Nokia brand, Kochhar said HMD is pursuing a multi-brand strategy. The company has its own HMD-branded phones and accessories, while Nokia feature phones remain an important part of its portfolio.

“We will continue to sell Nokia feature phones,” Kochhar said, adding that the decision reflects continuing demand for the devices in Pakistan and other markets. He said the multi-brand approach allows HMD to offer products under the brand it considers most appropriate for individual markets and consumers.

Kochhar also described changing consumer attitudes toward smartphones as an emerging opportunity for feature phones. He cited HMD’s Better Phone Project research, which surveyed more than 37,000 parents and children globally. According to the research, families want connectivity but are also concerned about the broader access and distractions associated with smartphones.

He said HMD is seeing demand from digitally savvy adults who already own premium smartphones but purchase simpler feature phones for weekends, travel or periods away from social media and notifications. In Pakistan, he said, this trend adds a digital-wellbeing dimension to an existing market driven by affordability and reliability.

Rising component costs are another challenge. Kochhar said memory prices have increased significantly over the past two quarters, affecting affordable smartphones and low-cost feature phones in particular. HMD is responding by securing components earlier, conducting stricter chipset qualification and, in some cases, accepting higher landed costs instead of reducing features or quality consumers may notice over time.

Kochhar also attributed Pakistan’s continued large 2G user base primarily to affordability and network development rather than resistance to newer technology. He said a 5G-capable device can still cost more than PKR 50,000 after duties, while 4G and 5G networks continue to expand beyond major cities.

Looking ahead 12 to 18 months, Kochhar said HMD will focus on rugged devices, affordable smartphones and more capable 4G feature phones. He did not disclose specific upcoming models or launch dates but said the company would continue strengthening retail and distribution partnerships and keeping device financing central to improving access.

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