Microsoft to sell feature phone business to Foxconn

Microsoft acquired Nokia's feature phone business in 2014, and now the Redmond giant has announced that the company is selling its feature phone business to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group and HMD Global for $350 million. FIH Mobile will also acquire Microsoft's manufacturing facility in Hanoi, Vietnam — Microsoft Mobile Vietnam.

As part of the deal, Microsoft will transfer all of the feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements. Once the deal is complete, about 4,500 employees will transfer or have the opportunity to join FIH Mobile or HMD Global. The deal is expected to close in second half of 2016, subject to regulatory approvals and other closing conditions. 

Microsoft said that it will concentrate and continue to develop Windows 10 Mobile platform and support Lumia phones such as Lumia 650, 950 and 950 XL, and phones from OEM partners including Acer, Alacatel, HP and VAIO. Rumors suggest that Microsoft will focus on Surface Phone launch next year. 

This means that the Nokia 230 that was released in November last year, will be the last feature phone from Microsoft. The news comes soon after Microsoft reported that it managed to sell only 2.3 million Lumia devices last quarter, a massive 73 percent drop from the 8.6 million in the same period last year. 

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