HMD Global is reportedly planning a strategic contraction, which involves exiting certain markets and reducing hardware production. The company intends to shift its focus toward higher-margin enterprise and industrial sectors, potentially signaling an end to global flagship smartphone launches for the consumer market.
The company acquired the exclusive 10-year license for the Nokia brand from Microsoft in 2016. Despite initial success with nostalgic models like the Nokia 3310, the brand struggled to compete with major players like Apple and Samsung. Consequently, HMD has shifted its strategy to focus on its own brand.
A supplemental agreement signed in August 2023 set the expiration for the exclusive smartphone and tablet license to March 2026. However, due to the continued popularity of Nokia-branded feature phones in emerging markets such as India, the Middle East, and Africa, the licensing agreement for these devices has been extended by approximately 3 years, until 2029.
