Microsoft announces agreement to sell the Nokia feature phone division to Foxconn for $350M

Microsoft announces agreement to sell the Nokia feature phone division to Foxconn for $350M
Just a few days ago, a rumor originating from China claimed that Microsoft will sell its feature phone division to contract manufacturer Foxconn. Today, Microsoft officially announced the agreement, which will see Foxconn taking over the Nokia feature phone division in exchange for $350 million USD.

As part of the deal, Foxconn will receive the right to use the Nokia brand for feature phones, and the company will also take control over the Nokia feature phone software and services, critical supply agreements, as well as any related customer contracts.

Foxconn will also take property of Microsoft's Hanoi, Vietnam manufacturing facility. According to Microsoft's announcement, roughly 4,500 Microsoft employees will have the opportunity to join Foxconn or its subsidiaries. 

Microsoft said that it expects the deal to close in the second half of the year, following regulatory approvals and other closing conditions, as is often the case in such acquisitions and mergers.

While Microsoft is about to sell its Nokia feature phone division to Foxconn, the Redmond-based tech giant has assured Windows smartphone fans that it will continue to develop Windows 10 Mobile. Furthermore, the company says that it will continue supporting Windows 10 Mobile phones such as the Lumia 650, 950, and 950XL, as well as handsets from third-party manufacturers such as Acer, HP, Alcatel, VAIO, or Trinity.

The rumor that hinted at this merger claimed that the remaining Microsoft Lumia employees will focus on developing the often rumored Microsoft Surface phone. Obviously, however, Microsoft's announcement makes no mention of such a move. 

source: Microsoft

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32 Comments

1. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Nokia Feature-phone ~= 1.84% WhatsApp...crazy how a once upon a time giant is now worth less than an app.

20. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

You know that Nokia is still a huge company? They still have billions and billions! They are not dead!

26. Acdc1a

Posts: 473; Member since: Jan 21, 2016

Their phone business is...

28. xq10xa

Posts: 808; Member since: Dec 07, 2010

apparently not. If they are making phones again?

29. Acdc1a

Posts: 473; Member since: Jan 21, 2016

Blackberry still makes phones and I'd venture to say that their phone business is also dead.

24. volcano

Posts: 348; Member since: Jan 25, 2013

its feature phone department not Nokia company nor Mobile Devision or nokia research department they are a live and kicking in Network world

2. Phantom1031

Posts: 263; Member since: Aug 02, 2014

R.I.P Nokia my beloved. Owned many of the feature phones from Nokia and few Symbian in Good Ol Days. This is a cruel world where such a Giant and beloved brand has been torn to parts. Lets see how Foxconn will manufacture Nokia feature phones

3. smahola

Posts: 1; Member since: May 18, 2016

I don't know why phonearena is not reporting on this, but Nokia announced some huge news today about the future of Nokia -branded smartphones.

5. hafini_27

Posts: 949; Member since: Oct 31, 2013

Make it into 2 articles, of course.

17. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

21. donrox

Posts: 201; Member since: Jul 18, 2014

yeah. Took their time. and wrote another article

4. Arthurhkt

Posts: 723; Member since: Apr 19, 2012

Not only Microsoft sell the feature phone division to Foxconn, Nokia(Under agreement with HMD) will return to the market with the Android smartphone as well! I really hope that their Android UI will follow their Symbian UI.

6. Xperia14

Posts: 1208; Member since: Sep 01, 2015

10. donrox

Posts: 201; Member since: Jul 18, 2014

this is awesome news indeed!

15. Xperia14

Posts: 1208; Member since: Sep 01, 2015

Yes, they're back! With android this time!

7. hafini_27

Posts: 949; Member since: Oct 31, 2013

Nokia still lives on and will bring out Android smartphones, tablets in the future.

8. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

I thought that phonearena was wrong about selling the feature phones but apparently it can be sold .

11. TerryTerius unregistered

Quite a few people got that one wrong. Don't sweat it. A lot of us weren't even aware that Microsoft was in a position to do that.

12. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Yes it can be, because they actually bought the whole division

13. Tech_Savvy

Posts: 4; Member since: May 16, 2016

f**k Microsoft in so many ways! Buying a famous, albeit struggling, phone manufacturer and completely killing it off. It's arguable that Nokia could have remained buoyant if they had adopted the Android platform instead of the Windows Phone one - excellent hardware with customisable software would have been a win-win.

18. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

This is about feature phones not smartphones!

22. Tech_Savvy

Posts: 4; Member since: May 16, 2016

I'm aware of that, however Microsoft initially took over Nokia in order to take control of both feature phones and smartphones. However, they have ruined the brand now.

25. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

That idiot Elop!

31. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

You do know that you cannot rewrite actual history right? You do know that Android was thought of before Windows. It was thought of before Elop and during his reign. Each time the challenge was $$$$$ they were bleeding it bad. Millions a day. MS allowed them to be paid by MS to further their hardware. It didn't work out, through many factors not just OS. You want to see a total gutting...ask google and moto how its going. errr wait Lenovo lol.

14. 444777

Posts: 399; Member since: May 02, 2016

Microsoft lost 6billion, and knows selling Nokia for 350M.

19. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

Feature phones dude not smartphones, PA is not telling the whole story here!

23. 444777

Posts: 399; Member since: May 02, 2016

Oh I see, I thought it was the smartphone side.

16. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

Why does PA always tells half of the Story? Are they looking for a sensation? Old employee of Nokia and Microsoft is buying the Nokia brandname to make Android phones. New company name HMD Global Oy was created in Finland, they will make Phones and tablets under the name Nokia running Android. They will pump 500 million dollars to make this happen. HMD Global Oy together with Foxconn will take over the featurephone division from Microsoft for 350 million dollars.

27. newuser1

Posts: 276; Member since: Dec 10, 2010

surface phone is dead too ?

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