HMD Global has announced its withdrawal from the US market, ceasing sales of Nokia phones due to economic challenges. The Finnish company, which licenses the Nokia brand, has cited a “challenging” geopolitical and economic environment as the primary reasons for this decision. This marks another significant retreat for the once-popular brand in the United States.
As of now, HMD has removed all Nokia phone listings from its US website, and even its own HMD-branded devices are no longer available for purchase online. The company’s statement, shared by Wired’s Julian Chokkattu on Threads, indicates that tariffs may have influenced this decision. As HMD specializes in budget and feature phones, it likely struggled to maintain competitive pricing in the US market.
Impact on Sales and Support
Over the past few months, HMD has been gradually withdrawing its devices from the US market. Many listings for Nokia phones were updated at the beginning of the year, indicating they have been discontinued. While remaining stock of HMD devices is still available through retailers like Amazon.com, links to purchase these phones from HMD’s US website are now inactive.
Despite the cessation of sales, HMD has assured customers that it will continue to honor warranty coverage and service for existing products in the United States through its global support team. The company also expressed its commitment to supporting its US staff during this transition period.
In a notable shift, HMD Global signed a licensing agreement with Microsoft in 2016, granting it exclusive rights to the Nokia brand for mobile phones and tablets for a decade. As part of its strategy, the company announced in September 2023 that it would launch a new handset brand, indicating a desire to diversify its offerings as the Nokia name faces uncertainty.
Future of the Nokia Brand
The licensing agreement allowing HMD to use the Nokia name is set to expire in March 2026. Since the agreement began, only four HMD-branded phones have been launched in the US, with the most recent, the HMD Fusion, debuting in September 2024. This limited presence highlights the challenges HMD has faced in establishing itself in a competitive market, especially given that several models have been introduced internationally without a US release.
Despite the withdrawal from the US, Nokia feature phones remain available in global markets. In fact, there are rumors circulating that five additional models will be released before the licensing agreement concludes. Once the agreement runs out, Nokia will have the option to grant the brand to other manufacturers. HMD could also remain a non-exclusive licensee, or potentially follow a path similar to that of BlackBerry, which has chosen to cease licensing its brand for phones altogether.
As HMD navigates this challenging transition, the future of the Nokia brand in the mobile phone market hangs in the balance.
