This whole deal is a bit confusing to understand, but to start off, Microsoft has sold off the part of Nokia that makes feature phones to Foxconn. And in other news, the part of Nokia that was unsold during the Microsoft buyout has announced that it will be returning to making Android smartphones soon.
First it was Microsoft who made its announcement. It has decided to sell off the Nokia feature phones business to FIH Mobile, a subsidiary of Foxconn at $350 million. As part of the deal, Microsoft will be parting with a manfucturing facility in Hanoi as well as 4500 employees who will be given the opportunity to join Foxconn.
Coming to the Nokia part of all this, the original Finnish firm has announced its much anticipated return to the smartphone market. A newly formed firm in Finland has now acquired the rights to produce Nokia branded smartphones and tablets for the next ten years.
It’s no surprise that these devices will be running the Android OS. HMD has revealed that it will be investing $500 million over the next three years in order to develop and promote products. Surprisingly, Nokia’s involvement in creating the new smartphones and tablets seems to be very limited.
It will be sitting on HMD’s board, and issuing a set of ‘mandatory brand requirements and performance related provisions’ for the new devices. To make matters more confusing, FIH Mobile the Foxconn subsidiary which just bought Microsoft’s feature phone division, will be responsible for the manufacturing of these new Nokia devices.
Amongst all this Microsoft has claimed that it will continue to support Windows 10 Mobile as well as its own phones like the Lumia 950. However, the company hasn’t mentioned anything about releasing new smartphones.