HMD Global is effectively shutting down its operations in the United States, ceasing sales of its Nokia-branded smartphones. The company has discreetly removed two of its once-popular models from its online store, indicating a significant shift in its business strategy. While no formal announcement has been made regarding a complete exit from the US market, all indications suggest a withdrawal is imminent.
The company confirmed on July 11, 2023, that it is “scaling back” operations in the United States. In a statement, HMD Global acknowledged the challenging geopolitical and economic landscape that has influenced its decision. “Like many global businesses, HMD is navigating a challenging geopolitical and economic environment,” the statement read, as reported by The Verge. Although the company did not specifically cite tariffs or trade issues as contributing factors, industry analysts believe these elements may play a role.
HMD Global has taken down its US webstore, which now displays limited product options. Some pages lack purchasing capabilities, while others show inactive “Where to buy” buttons. As a result, no new HMD or Nokia devices are being sold directly in the US, although some models remain available through third-party retailers such as Amazon. These listings, however, are limited and often not updated.
Despite this reduction in sales, HMD Global assures customers that it will continue to provide warranty coverage and service support for existing products. The company has committed to honoring all obligations to its customers and will maintain support through global teams. HMD did not clarify whether layoffs among American employees would occur but expressed its commitment to supporting impacted staff during this transition.
Founded in 2016, HMD Global acquired Nokia’s phone business from Microsoft, which had purchased the brand two years prior. The company focused largely on budget and midrange smartphones, revitalizing the Nokia name. As of 2023, HMD began transitioning away from the Nokia brand, introducing devices under its own name, including the modular HMD Fusion and the repairable Skyline, the only Android phone supporting Qi2 wireless charging.
Market Challenges and Future Plans
HMD Global’s foray into unique collaborations included the Barbie flip phone and the Heineken “Boring Phone,” both launched in 2024. Despite these efforts, the US market has not been particularly fruitful for HMD, with only four HMD-branded smartphones released to date. The last new model, the HMD Fusion, debuted in September 2024, and Nokia-branded smartphones have since diminished, primarily relegated to basic feature phones.
Even as it steps back from the US, HMD Global is focusing on long-term growth in other markets. The company sees potential for expansion in categories like secure devices, family-friendly technology, and microfinancing, aiming to maintain momentum across its mainstream business.
For now, American customers seeking new Nokia phones may find their options limited. HMD Global’s decision to withdraw from the US market highlights the complexities faced by global companies in a challenging economic climate. The company did not respond immediately to a request for further comments.
As HMD Global navigates this significant shift, it remains to be seen how its strategies will evolve in other international markets.