Foxconn Technology is best known as the company that assembles iPhones for Apple.

But Foxconn , probably seeking income that contract work can't fetch, is essentially making its own phones now via a stake in HMD, the Finnish company behind the Nokia brand of handsets. Foxconn’s subsidiary FIH Mobile owns 6% of HMD and manufactures the phones that its Finnish partner designs. HMD, which is two years into its agreement for use of the Nokia name that runs through to 2026, had thus far been faring better than many had expected.

The Taiwanese firm chaired by billionaire Terry Gou pumps out the handsets and other gear for U.S. tech giant and other developers at mega-factories in China.Now smartphone sales across brands are declining after years of growth, and they’re not expected to rebound just yet. That makes it hard for HMD to gain market traction. Or does it?“Looking at HMD’s growth over the past couple of quarters, it has not been underwhelming at all considering the global slowdown and the competition from Chinese players,” says Kiranjeet Kaur, research manager with IDC's Asia-Pacific Client Devices. Still, she says, “it is a steep uphill task to continue to grow and compete with other players who have a strong grasp on certain distribution channels, or deep pockets to spend on marketing.”