Xplora Technologies AS Announces Strategic Partnership with HMD Global to Expand into the Youth Phone Market

29 Oct 2024 07:00 CET

Oslo, 29 October 2024 – Xplora Technologies AS ("XPLORA"), is excited to
announce a strategic partnership with HMD Global, the home of Nokia phones, to
drive its expansion into the youth phone market. This partnership marks a
significant milestone in Xplora’s journey toward reaching one million
subscriptions.

Expanding Beyond Smartwatches:
Building on its success in the children’s smartwatch segment, Xplora is
broadening its reach to include youth (ages 10-15) and senior consumers. In
order to address the young users transitioning from smartwatches, we have
entered into a collaboration with HMD Global, and will launch a range of
feature phones and smartphones designed specifically for young users. Xplora
will provide these devices with its award-winning family IoT platform, parental
controls, and pre-installed SIM connectivity.

HMD Global will handle hardware development, inventory, and distribution, while
Xplora will focus on growing its subscription services. In return, HMD Global
will benefit from a share of Xplora's service activation revenue.

Focus on Safety and Responsible Usage:
Recently, there has been a growing demand from parents for smartphone solutions
that are more suitable for children in this age group. This aligns with the
latest research on child development, particularly highlighting the negative
impact of social media and excessive smartphone use on children’s mental health.
Earlier this year, HMD Global launched "The Better Phone Project" to gain deeper
insights into these concerns. Through a global survey of more than 10,000
parents, valuable data was gathered, which can now be leveraged to create a
market-leading value proposition tailored to these needs.

CEO Sten Kirkbak’s Statement:
“We’re excited to partner with HMD Global as we expand into the youth market.
This collaboration not only brings best-in-class devices but also significantly
reduces our financial exposure by outsourcing distribution and working capital.
Additionally, expanding our product range allows us to retain customers longer,
extending their journey with Xplora.”

Enhanced Go-to-Market Strategy:
By leveraging both companies’ distribution channels, the partnership aims to
increase smartphone sales for youth. This approach will attract new customers
while helping to retain existing users as they transition from smartwatches to
more advanced devices, driving loyalty and subscription growth.

HMD Global CEO Jean-Francois Baril added:
“We are thrilled to join forces with Xplora to deliver technology that supports
the unique needs of young users. Our collaboration focuses on creating a healthy
and safe digital experience, providing essential features without unnecessary
distractions, leveraging on our many years experience in the industry.”

The first products under this partnership will be unveiled at Mobile World
Congress in March 2025.

For further information please contact:
Sten Kirkbak, CEO, +47 92203710, sten.kirkbak@xplora.com
Knut Stålen, CFO, +47 92043458, knut.stalen@xplora.com

About Xplora Technologies AS
Xplora is a platform and services company and an industry leader in the market
for children’s smartwatches. Xplora was founded to give children a safe
onboarding to the digital life and a better balance between screen time and
physical activity. Xplora’s vision is to enable children around the world to
experience how their everyday activities can create value and make a positive
change in the world. The company is headquartered in Norway with operations in
leading European markets. Xplora is listed on Euronext Growth under the ticker
symbol XPLRA.

About HMD Global
HMD Global, the home of Nokia phones, is a Finnish company founded in 2016. It
develops and markets a wide range of smartphones and feature phones, focused on
reliability, durability, and security. HMD Global’s portfolio combines the
heritage of Nokia with modern design and cutting-edge Android technology. Known
for offering pure Android experiences with regular updates, HMD Global has built
a reputation for creating high-quality, trusted devices used around the world.
In 2023 HMD Globally distributed more than 40 million devices.

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