A logo sits illuminated outside the Microsoft pavilion on the opening day of the World Mobile Congress at the Fira Gran Via Complex on Feb. 22, 2016 in Barcelona, Spain. (Photo : Getty Images)
Microsoft is selling its Feature Phone business in Vietnam to two separate buyers in a hefty $350 million deal. Hon Hai/ Foxconn Technology Group's subsidiary FIH Mobile Ltd. and Finland-based HMD global will take over Nokia, Microsoft's Feature Phone business and will absorb Microsoft's 4,500 employees.
The $350 million deal will place the Microsoft employees to FIH Mobile Ltd. and will transfer the rights to use the Nokia brand; services; feature phone software; and other contracts and supply agreements. HMD Global, a new business venture will be getting the exclusive global license of producing Android smartphones and tablets under the Nokia brand for the next 10 years.
In Microsoft's official press release on May 18, Wednesday, it said that it "will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO." The agreement is anticipated to close by the second half of 2016.
All negotiations will be subjected to regulatory approvals and other local laws. The news came after Microsoft was seen slowing down on its Feature Phone business in the recent years. In July 2014, Microsoft placed Its Nokia X mobile phones, Series 40 and Asha to maintenance mode. No new features or updates were received by these mobile phones since then.
Microsoft is one of the premiere technology companies that manufacture, develop, license, support and license consumer electronics, computer software and personal computers and services. It pioneered MS-DOS and Microsoft Windows.
Microsoft acquired Skype Technologies in 2011. It also manages Bing internet search engine, Xbox game industry and MSN.
In other news, it was revealed that Microsoft changed its mobile strategy almost a year ago to focus on budget, flagships and business phones. In a recent interview, Microsoft told The Verge that it is not focusing on Windows phones this 2016, but assured that the company's commitment to the mobile space remains the same.
Speculation that Microsoft will be introducing a Surface Phone in 2017 has been rounding off the internet for quite some time now. Reports that it already discontinued its Lumia brand has also surfaced.
Check out the details of Microsoft's agreement to sell its Feature Phone business:
