Foxconn buys Microsoft’s Feature Phone Business For $350 Million
Microsoft has announced it has reached an agreement to sell the feature phone business it acquired from Nokia back in 2014 to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global. The deal worth $350 million is expected to close by the second half of 2016.
As part of the agreement, HMD Global will have the right to use the ‘Nokia’ brand on feature phones, software, other services, contracts and supply agreement. It also plans to produce and sell smartphones and tablets for the next 10 years. The deal will also see the company inherit Microsoft’s manufacturing facility in Hanoi, Vietnam – the Microsoft Mobile Vietnam.
Microsoft stated that its 4500 staffs involved will transfer to or have the opportunity to join either FIH Mobile Ltd. or HMD Global, Oy. The Redmond giant also reiterates it will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950, Lumia 950 XL as well as Windows Phone devices from partner firms such as Acer, Alcatel, HP, Trinity and VAIO.
Multiple reports suggests the Surface team will now be in charge of producing Lumia smartphones but the line could end up being scrapped for the long awaited Surface Phone line.