Nokia phone maker HMD exits US, says '.... has forced difficult decisions'

Time of India

11-07-2025

HMD Global
, the Finnish company that has manufactured Nokia-branded smartphones since 2016, is exiting the US—the third largest smartphone market, entirely, ending nearly a decade of attempts to revive the iconic brand in America. In an email statement to Wired, the company said it will "scale back" all US operations immediately, effectively killing
Nokia
phones in the
United States
for the second time in its history.
With this move, both Nokia-licensed devices and HMD's own branded smartphones disappear from American shelves, including the user-repairable Skyline and the quirky
Barbie
flip phone that launched last year in partnership with Mattel.
Tariffs and economic pressure drive Nokia phone-maker HMD out of US
HMD
cited "a challenging geopolitical and economic environment" as the primary reason for withdrawal, a diplomatic reference to the ongoing tariff situation that has squeezed profit margins for budget-focused phone makers, in its statement. The company specialized in
affordable devices
, where slim margins make it particularly vulnerable to additional costs from trade policies.
The writing was on the wall for months, HMD quietly removed phones from sale, discontinued older models, and even relegated Nokia devices to a separate section of its website. The company's latest phone, the Fusion X1, never launched in the US despite being available in other key markets.
HMD Global's US employees face uncertain future
While HMD pledges to support affected American staff "during this transition," the company has remained notably silent about specific job numbers or severance packages. The vague corporate language suggests potential layoffs are coming, though HMD stopped short of confirming whether its entire US workforce will be eliminated or relocated to international operations.
What happens to American HMD and Nokia users
Current HMD and Nokia phone owners in America won't be left hanging. The company promises to honor all warranty coverage and provide ongoing support through its global teams, ensuring existing customers can still get help when needed.
While some devices like the 2024 HMD Vibe remain available through Amazon, Best Buy, and Walmart, these appear to be final stock clearances rather than ongoing sales. HMD's US website has already disabled purchasing functions, though product pages remain live.
The Nokia licensing deal expires in March 2026, potentially marking the final chapter for the legendary brand's smartphone ambitions.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now