HMD Global, the company behind Nokia phones, is stepping away from the US smartphone market. The company confirmed it is scaling back operations in the region, blaming “a challenging geopolitical and economic environment” for the decision.
The news was first reported by Julian Chokkattu, a senior tech editor at Wired, and later the news was covered by The Verge.
For anyone who has followed HMD’s journey, this is not entirely surprising. Despite nearly a decade of trying, the company never quite cracked the US mobile market. It made budget Android phones, revived classic Nokia models like the 3310, and even launched some quirky feature phones. But none of it helped build serious traction in a market where Apple and Samsung dominate and carrier partnerships are everything.
HMD had recently started shifting away from Nokia branding to its own and launched phones under the “HMD” name. It looked like a fresh start, but clearly, it did not go as planned in the US. HMD says it will now focus on other markets where it sees growth, especially in areas like secure phones, family devices, and financing-based models.
In its official statement, HMD assured that customers will still get support and warranty services. But there is also concern for its US staff. The company said it values their contributions, but did not confirm if those jobs will stay. That statement usually signals layoffs.
HMD Global was born in 2016 after Microsoft decided to exit the smartphone business. Microsoft acquired Nokia’s mobile phone business to strengthen its position in the smartphone space. But its Windows Phone never really took off. In 2016, Microsoft sold the Nokia brand license and feature phone business to a newly formed Finnish company called HMD Global. The company was started by ex-Nokia executives and is headquartered in Espoo, Finland. HMD also signed a licensing agreement with Nokia, giving it exclusive rights to make phones, tablets, and accessories under the Nokia brand for the next 10 years.
