Nokia rises from the ashes
By Digital News Asia May 24, 2016
- Feature phone business sold off
- Microsoft will continue to sell Lumia
NOKIA is going to make a comeback thanks to a deal between Microsoft, FIH Mobile (a subsidiary of Foxconn) and HMD global Oy.
Microsoft has announced it is selling its feature phone business to the two companies for US $350 million. The sale will include around 4,500 employees and its Vietnam-based manufacturing facility, Microsoft Mobile Vietnam.
HMD will produce phones and tablets bearing the Nokia brand name for the next 10 years. HMD plans to invest US $500 million into the venture. Nokia will also provide HMD with branding rights and cellular patent licences in return for royalty payments.
The deal is restricted to just Nokia's feature phones. Microsoft will continue selling its Windows-powered Lumia smartphones directly.
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