HMD Global, the company behind Nokia-branded phones since 2016, is stepping back from the US market amid a “challenging” economic environment. This decision includes halting sales of both Nokia and HMD-branded devices across the country.
Gradual Phase-Out of Nokia Phones
Over recent months, HMD Global quietly removed many phones from US sales channels and discontinued older models. The latest phone, Fusion X1, did not launch in the US despite availability in other key markets. Additionally, the brand has moved many Nokia devices to a separate section of its website, away from its newer HMD phones.
By January, listings for several Nokia models were updated to indicate discontinuation. Some phones, like the 2024 HMD Vibe, remain available but appear to be selling off remaining stock. The company’s website no longer offers active purchase links for US buyers, though major retailers such as Amazon, Best Buy, and Walmart still stock these devices.
HMD Global assured customers that despite its market exit, it will continue honoring warranty and service obligations for existing products. The company said, “We will continue to honour all obligations, including warranty coverage and service for existing products, and provide full support through our global teams.”
Reasons Behind the Withdrawal
Though HMD Global did not explicitly cite ongoing tariffs as a factor, it attributed its decision to a “challenging geopolitical and economic environment.” As a Finnish company specializing in affordable phones with tight profit margins, sustaining US operations has become increasingly difficult.
HMD Global’s license to use the Nokia brand extends until March 2026. According to leaked sources, the company is expected to release approximately five new Nokia phones before the deal expires. The brand will continue to operate in other international markets for the foreseeable future.
Author’s Opinion
HMD Global’s departure highlights the uphill battle budget phone brands face in the US market, where competition, tariffs, and tight margins squeeze profitability. Without premium pricing or scale, sustaining operations is tough. It’s likely we’ll see more niche or value-focused brands struggle unless they adapt or consolidate. The Nokia name still holds value internationally, but its US presence may be a thing of the past.
Featured image credit: Wikimedia Commons
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