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Microsoft selling its feature phone business

Microsoft Nokia 222 feature phone, Microsoft selling the business
Microsoft Nokia 222
Microsoft's feature phone assets will pass to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy as part of a deal worth $350 million.

Although basic handsets without any smart capabilities are still being sold all around the world, their numbers are very low. Even feature phones with basic Internet connectivity are not doing much better and the latest move by Microsoft confirms that.

According to an official news article by the Redmond giant, the company "reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million." Microsoft Mobile Vietnam's Hanoi manufacturing facility will join FIH Mobile Ltd. and around 4,500 employees will be able to join FIH Mobile Ltd. or HMD Global, Oy.

The deal is expected to close in the second half of the year and involves the transfer of the entire feature phone assets currently owned by Microsoft, "including brands, software and services, care network and other assets, customer contracts, and critical supply agreements." However, the company will continue to work on Windows 10 Mobile and to provide support for Lumia handsets and phones from OEM partners such as Trinity, VAIO, HP, Alcatel, and Acer.


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Codrut Nistor, 2016-05-18 (Update: 2016-05-18)