HMD, the official licensee of Nokia-branded phones, has made a significant move to scale back its operations in the United States, citing the challenging geopolitical and economic environment.
While the company did not provide further specifics, it is widely believed that ongoing tariff issues in the US have played a role in this decision.
Despite this downsizing, HMD has reassured US customers that warranty support and service will continue through global teams. The company also emphasized its commitment to long-term growth and acknowledged the contributions of its US staff impacted by the decision.
The move is seen by many as the end of an ambitious attempt to reinvigorate the Nokia brand. HMD’s failure to build a strong, niche product line, combined with the challenges of licensing fees and a lack of marketing resources, left it struggling to make a lasting impression in the competitive US smartphone market.
Some analysts argue that HMD could have found more success if it had better capitalized on its early potential, leveraging Nokia’s legacy while introducing more innovative products. The lack of a clear identity and the early decision to abandon the Nokia name are often pointed to as key mistakes that hindered the brand’s growth. Despite these setbacks, the company still aims to focus on other segments, such as family, security, and microfinancing, to sustain long-term success.
For now, it seems HMD must rethink its strategy for the US market or face the harsh reality of further decline.