Nokia Exploring New Manufacturing Partnerships Ahead of HMD License Expiry in 2026

Nokia is currently exploring partnerships with “large scale” mobile manufacturers to produce its phones, a company executive revealed in a community post on a social media platform. The company is currently in tied in a global licensing agreement with Human Mobile Devices (HMD) Global, who also owns its phone division. Since, in 2024, HMD Global started marketing Nokia devices under its own branding, Nokia could be exploring potential ways in which it can sell smartphones under its own name.

HMD Global and Nokia's Licensing Deal

In a post on Reddit, Nokia's community manager called upon “large scale” mobile manufacturers, who are interested in exploring collaboration opportunities with the brand, to reach out to them through its website. This indicates that the company could be looking for ways to sell phones with the Nokia branding as the initial 10-year licensing agreement with HMD Global is set to end in 2026. However, there is also chance that the said agreement is renewed as HMD Global owns Nokia's mobile division, which it bought from Microsoft in 2016.

For context, one can look at what unraveled between 2016 and 2024 that has ramifications on the present scenario. HMD Global, which was formed in May 2016 by former Nokia executives, decided to come together to revive the Nokia brand to its former glory. To achieve this, the company signed a 10-year licensing agreement with Nokia to manufacture and market its phones, which were briefly sold by Microsoft under the Lumia branding. Additionally, in February 2024, HMD Global decided to start launching Android smartphones under its own branding, essentially dropping the Nokia branding from its smartphones, restricting it to some feature phones.

These developments could be now culminating into Nokia exploring partnerships outside, as in 2026 it will be free to sell its license to another manufacturer that can produce, market, and distribute smartphones with Nokia branding. However, neither Nokia nor HMD Global has officially revealed their future plans about what will happen when the agreement concludes next year.

According to Nokia's 2023 annual report, although the company saw a decline in its sales, its patent licensing agreements were able to keep the company buoyant. Hence, the significance of licensing, both patents and technologies, is immense for the company's financials. Similarly, its trademark and manufacturing agreements are important for the Nokia brand to stay relevant.