HMD launched the Fusion smartphone with a modular design in 2024 and a Fusion 2 was rumored in October of last year. However, it hasn’t arrived yet, and a new rumor from a typically reliable source of HMD‑related information suggests why. The rumor claims that HMD may have canceled the project altogether, leaving the original Fusion as its only modular phone. The cancellation “hasn’t been confirmed yet,” but if it does, it would stem from high manufacturing costs and profitability concerns. This makes sense, as modular phones remain a niche product with low sales, making an ecosystem of accessories and modules costly to maintain. While a flagship modular phone from a giant like Apple or Samsung might succeed, a niche brand like HMD faces a tougher market.

The company plans to honor its three‑year update promise for the original Fusion for consumers and a five‑year update window for businesses, according to the same source. The rumor highlights the financial challenges of keeping a modular platform viable in a market that has yet to embrace such devices widely.