Microsoft has agreed to sell its feature phone business to FIH Mobile, the contract manufacturer owned by Hon Hai/Foxconn Technology Group, and Finnish company HMD Global for Dollars 350 million.
The deal will see FIH Mobile acquire Microsoft's manufacturing facility in Hanoi, according to the announcement.
Are you excited to see Nokia returning to mobile with Android devices?
Microsoft is effectively freeing itself from the feature phone assets and the Nokia brand name that it acquired when it purchased the Nokia's mobile phone business.
Post closure of this deal, some 4,500 employees will move to or have the opportunity to join FIH Mobile or HMD Global Oy subject to compliance with local laws.
However, in the press release, Microsoft has intimated to Foxconn that it will continue to develop Windows 10 for Mobile Lumia smartphones along with its other partners like Acer, Alcatel, HP, Trinity and Vaio.
FIH Mobile has snapped up the business, which Microsoft bought from Nokia in 2014 for $7.5bn (£5.2bn), for just $350m.
"Nokia branded basic phones are still among the most popular phones in several markets". The company announced a licensing and manufacturing deal with Finnish company HMD and FIH Mobile to create mobile phones and tablets bearing the Nokia name. One other detail that we do know is that HMD plans to invest around $500 million over the next three years to market these Nokia smartphones and tablets, so the devices will get a nice marketing boost. Microsoft has struggled to make an impact in the smartphone market with Windows Phone and recently denied reports it was retreating from the market.
HMD's device portfolio will be based on Android, Nokia said.
Nokia's Chennai plant, which was started in 2006, made about 180 million phones at its peak, but operations were suspended and eventually shut due to a Rs. 20,000-crore tax dispute.
Source: Nokia to Launch Android Smartphones & Tablets with FIH Mobile & HMD Global
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