Microsoft Latest News & Update: Tech Giant Unloads Nokia Feature Phone Division To Foxconn Subsidiary Group

By Snooky Grawls , Updated May 19, 2016 08:05 AM EDT

The Nokia brand has long been kept in the dark but the recent deal involving Microsoft and FIH Mobile Ltd. may pave the way for a possible resurrection of the once popular brand.

It was announced Wednesday that Microsoft has come to terms with FIH Mobile Ltd., a subsidiary of Hon Hai/ Foxconn Technology Group and HMD Global in a $350 million deal. With this development, Foxconn will be taking over the Nokia feature phone division and gain the right to use the Nokia brand.

What Foxconn gets

Aside from the phone niche, Foxconn will also take control of the Nokia feature phone software and services, critical supply agreements and other related customer contracts.

Part of the deal includes Foxconn acquiring the rights to Microsoft Mobile Vietnam, the manufacturing facility located based in Hanoi, Vietnam. Around 4,500 employees are affected and are expected to be given the option to either join Foxconn or their subsidiaries.

The deal is expected to be officially done by the second half of the year once the necessary regulatory approvals and closing conditions have been ironed out.

Microsoft for its part promised to continue developing its Windows 10 Mobile and will continue to support phones that run on the Windows 10 mobile OS such as the Lumia series (650, 950 and 950XL) and other phones under Acer, HP, Alcatel, VAIO and Trinity.

Windows Surface Phone coming soon?

The sale sends mixed signals such as the company refocusing its business strategy. Those plans could possibly include a long rumoured device that many believe is in the works – the Windows Surface Phone.

Nothing tied up to such was mentioned during the announcement of the deal though there is a chance that the remaining employees may eventually be re-assigned to focus on a different niche.

Remember that Microsoft did say that they were to continue in the development of Windows 10 Mobile, hinting that the company has not totally turned its back on the mobile device market. Much of this is likely to render a better picture once the Microsoft-Foxconn deal is done and over with.

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