Brenden Folitarik, General Manager of HMD Global in Oceania, has exited the struggling smartphone maker, announcing he is “taking a break” from the industry. His departure comes as HMD battles sliding sales and dwindling relevance in a market dominated by Motorola, Samsung, and a resurgent Oppo.

Folitarik, who joined HMD four years ago after selling TCL phones, has been unable to gain traction with the European brand. Analysts now believe HMD is close to abandoning its smartphone ambitions altogether, with plans to retreat to its dwindling but steady Nokia feature phone business.

Attempts to revive HMD with its own branding have raised eyebrows, given the company still holds the rights to the once-dominant Nokia name. Yet the launch of devices like the HMD Fusion X1—a $797 “teen-friendly” phone bundled with parental controls and a paid Xplora Guardian subscription—failed to resonate. While the first year’s subscription is free, users must pay annually thereafter to keep key safety features such as app control, screen-time management, location tracking, and AI-powered nudity blocking.

Despite Folitarik’s LinkedIn claims of delivering a “top four position” for Nokia in Oceania, the HMD brand itself has made little to no dent in market share. He lists achievements such as promoting digital detox, launching repairable phones, and introducing kid-focused devices like the HMD Fuse—but none translated into meaningful consumer adoption.

Globally and locally, HMD’s issues remain the same:

Intense competition from brands like Motorola, which has gained share in Australia over the past three years.

Weak brand recognition, with consumers reluctant to buy into “HMD” despite past loyalty to Nokia.

Operational cutbacks, including shuttering its US website and scaling down Australian operations.

With smartphone sales declining and its brand failing to stick, insiders say HMD has little choice but to double down on its Nokia feature phone business—the only part of the operation still generating steady demand.