HMD May Cancel Upcoming Modular Smartphone Due to High Costs

By: Harsh Vardhan

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Updated on: 14-Jul-2026 03:00 PM

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​HMD's anticipated modular smartphone, first announced in September 2024, may not reach the market. A reliable source for HMD news reports that the project could be canceled. The main reasons cited are high manufacturing costs and concerns about profitability.

Key Highlights

• HMD may cancel its upcoming modular smartphone due to high manufacturing costs.
• The original Fusion remains HMD's only modular smartphone currently available.
• HMD will honor three-year updates for consumers and five-year updates for business users.

Project Status and Possible Cancellation

HMD introduced its modular smartphone concept in September 2024 and followed with another announcement in October 2023. Despite these announcements, the new device has not launched. The source suggests HMD may have decided to halt the project. The cancellation is not yet confirmed, but financial challenges appear to be the main factor.

Modular smartphones allow users to swap out components or add accessories. However, the market for such devices remains limited. Managing an ecosystem of modules and accessories increases costs. For HMD, a smaller brand, these expenses may outweigh potential sales.

Market Challenges for Modular Phones

Modular smartphones have generated interest in the tech community, but actual consumer demand is low. Larger brands like Apple or Samsung could potentially succeed with modular designs due to their scale. For HMD, the niche appeal and high production costs create significant obstacles.

The original HMD Fusion remains the company's only modular smartphone currently available. The company has not confirmed the cancellation of the new project. If the decision is finalized, it would leave the Fusion as HMD's sole modular offering.

Support for Existing Devices

Despite the uncertainty around future modular models, HMD plans to support existing customers. The company will honor its three-year update commitment for consumers who own the Fusion. Business customers will receive updates for five years. This approach aims to maintain trust with current users while the company reassesses its modular phone strategy.