HMD's Gradual Fade-Out of the Nokia Brand: The End of an Era?

HMD's Gradual Fade-Out of the Nokia Brand: The End of an Era?Last year, HMD Global Oy (HMD) announced the production of its own brand devices, sparking speculation about whether it would cease producing Nokia-branded phones. HMDs initial statement attempted to quell these concerns, asserting that Nokia-branded phones would continue to coexist alongside HMD's own brand

HMD's Gradual Fade-Out of the Nokia Brand: The End of an Era?

Last year, HMD Global Oy (HMD) announced the production of its own brand devices, sparking speculation about whether it would cease producing Nokia-branded phones. HMDs initial statement attempted to quell these concerns, asserting that Nokia-branded phones would continue to coexist alongside HMD's own brand. However, recent developments reveal a shift in HMD's strategy, indicating a decreasing reliance on the Nokia brand.

This shift is most evident in changes to HMD's global website. All Nokia smartphones have been moved to a less prominent sub-category, no longer featured in the main smartphone product listing. This makes it difficult for consumers browsing the HMD website to find Nokia phones, clearly demonstrating a strategic reduction in Nokia brand promotion and a redirection of resources towards its own brand.

HMD's story with the Nokia brand began in May 2016 when Nokia licensed its brand to HMD. This partnership provided HMD with a strong brand endorsement for rapid market entry and allowed Nokia, a former mobile giant, to maintain a presence in the smartphone era. However, this wasn't an indefinite partnership. With the Nokia brand licensing agreement expiring in March 2026, HMD appears to be preparing for the future. The discontinuation of the official Nokia account and the active operation of HMD's official platform in August this year further corroborate this transition.

Before HMD's takeover, Nokia focused on Windows Phone, but HMD decisively steered Nokia towards the Android ecosystem. This strategic shift helped Nokia gain some market share in the Android market, but ultimately didn't alter HMD's strategic direction of decreasing reliance on the Nokia brand.

HMD has launched its first own-brand smartphone overseas the HMD Key. Positioned as an ultra-low-end entry-level phone, it showcases HMD's initial foray into its own brand strategy with its low price and basic specifications. Featuring a Unisoc SC9832E processor, 2GB RAM, and 32GB storage, it's priced at just 59 (approximately $65 USD). While the specifications are modest, its 6.52-inch LCD screen, 8MP main camera, and IP52 water and dust resistance offer some competitiveness in its price range. The phone's release further indicates HMD's active expansion of its own-brand product line and its attempt to secure a foothold in the low-end market. Notably, this processor is the same one used in the Nokia C1 Plus released by HMD in 2021, perhaps hinting at HMD's strategy regarding technology and cost control.

The launch of HMD Key provides clearer insight into HMD's future direction. HMD seems to be gradually abandoning its reliance on the Nokia brand, concentrating resources on the R&D and promotion of its own-brand phones. This represents a significant challenge for HMD, long dependent on the Nokia brand's reputation, but also presents new possibilities.

Looking back, the Nokia brand boasts a glorious history. The feature phone era saw Nokia create countless iconic models, such as the Nokia 3210, launched in 1999. Its iconic hourglass design and durability made it a cherished memory for a generation. Last May, a Nokia 3210 replica was launched, and despite its high price, it sold out in two days, reaffirming the classic model's position in consumers' hearts. However, the replica 3210 is merely a nostalgic continuation, unable to change Nokia's dwindling presence in the smartphone market.

While the replica 3210 retained the classic design, it incorporated modern elements like a 2.4-inch IPS screen, a 1450mAh battery, and built-in music and payment apps. However, these upgrades couldn't compensate for Nokia's lack of competitiveness in the smartphone market. The replica's success stemmed more from nostalgia than actual product demand.

As HMD reduces its reliance on the Nokia brand, the future of Nokia in the smartphone market becomes uncertain. While HMD hasn't explicitly stated it will abandon the Nokia brand entirely, its actions clearly indicate a strategic shift. Predictably, after the Nokia brand licensing expires in 2026, HMD will likely focus on its own brand, while Nokia might concentrate on the feature phone market or explore other partnerships.

For former Nokia users, this might mark the end of an era. The Nokia brand carries many memories and sentimental value, and its past glory in the mobile market remains unforgettable. However, market competition is fierce, and only continuous innovation and adaptation ensure survival. HMD's strategic adjustment, while signifying Nokia's fading presence in the smartphone market, explores new possibilities for its future. The launch of HMD Key is HMD's first step in this new direction, but it's only the beginning. Whether HMD can establish itself in the own-brand smartphone market remains to be seen. For the Nokia brand, the road ahead may be narrower, but perhaps it can find a new niche and opportunities in the feature phone market. Whether the former giant can be reborn in a new arena is still unknown.

HMD's strategic shift not only concerns its own future but also offers new insights for the entire mobile industry. In increasingly fierce market competition, balancing brand licensing and independent brand development will be a crucial ongoing concern for many mobile manufacturers. The Nokia-HMD story may become a classic case study in mobile industry history, providing valuable lessons for future companies. This is not just a company's transformation, but a generational shift.