HMD canceles its Circular Subscription

Back in the summer of 2022, HMD Global (then also known as Nokia Mobile on social accounts) launched a circular subscription for buyers of their Nokia devices. The main goal of this business plan was to offer buyers devices on a subscription basis and, when the time came, take the used phone back, refurbish it or scrap it properly, while the user continued with a new Nokia phone. This option showed that HMD was taking care of the environment and making efforts in recycling their products rather than having them dumped by users later.

As the Nokia brand is phasing out again from the phone market, the circular subscription is probably not a focus anymore, so the company canceled it. HMD might have waited for their own brand to start catching the market and continue the service, but probably not many people were using it since Circular was available in selected markets like the UK and Germany.

Phandroid confirmed that HMD Global has ended its “Circular” subscription service. Effective July 9, 2024, subscribers will no longer make payments and will retain full ownership of their devices from August 8, 2024, making the whole thing pretty much a failed effort.

But, these kinds of subscription models are doomed as Fairphone recently cancelled its subscription.  This is how the economy thinks of ecology. It is more brutal than Mother Nature since it doesn’t allow successful mutation and continuation of the service, which was a good story focused on sustainability and e-waste reduction.

However, it seems that Nokia’s Circular business model is still ongoing. HMD might have needed to follow Nokia’s policies according to their business agreement. Now that the agreement has changed since 2023, HMD is probably ditching services like these due to economic sustainability issues. ​

Thanks, Mike V. for the tip 😉

Update 10.07.2024. CET 12.22

We reached HMD and folks shared a statement regarding the Circular being cancelled. It seems that the service doesn’t fit the current business model. However, I do think it could be a nice addition to the whole Circular Economy business. Read the statement below.

Our Circular subscription model was a bold experiment and a testament to our commitment to exploring new avenues of service and sustainability. Circular ran for almost two years in the UK and Germany, and during that time, we gained some invaluable insights. It became clear that while the concept of a device subscription resonates with many, the model does not quite align with the varied preferences and lifestyles of our diverse customer base.
Our vision extends beyond subscriptions; we are reimagining the entire lifecycle of our devices. From sustainable manufacturing practices to seamless repair services, from extending the lifespan of devices to simplifying the replacement process – every aspect is being meticulously considered.

Customers are leaning into our repair-it-yourself devices. Ever since our first repairable smartphone earned its place on TIME Magazine’s list of the best innovations in 2023, we’ve kept that ball rolling, with three repairable HMD smartphones now available, and more on the way. We are committed to ensuring that three out of every four smart devices we sell in Europe can be repaired by 2024.