HMD launched the Fusion smartphone with a modular design back in September of 2024, and a Fusion 2 was rumored in October of last year. However, it hasn’t arrived yet, and now a new rumor from a usually reliable source of HMD-related information purports to explain why.
HMD Fusion
Apparently HMD may have canceled the project altogether, leaving the original Fusion as its only modular smartphone. The cancelation “hasn’t been confirmed yet”, but if it does go through, it would be due to “high manufacturing costs and profitability issues”.

That makes sense since despite the constant hype around modular smartphones, no one is actually buying them – which makes managing an entire ecosystem of accessories and modules a very expensive endeavor. Sure, if Apple or Samsung were to make their next flagship modular in some way, that would most likely be a success, but for a niche brand like HMD, not so much.
The company does plan to honor the three-year update promise for the original Fusion for consumers and five-year update window for businesses, according to the same source linked below.