Microsoft to sell the feature phone business to Foxconn

While we just heard reports about Nokia’s comeback, Microsoft seems to be distancing itself from the handset business.


Microsoft officially announced that it has entered into an agreement with FIH Mobile, to sell its entry-level feature phone business to the latter. Interestingly, FIH Mobile is a subsidiary of Hon Hai – better known as the Foxconn Technology Group, and HMD Global. The value of the deal is pegged at $350 million.

As part of the sale agreement, Microsoft will transfer all of its feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements. Further, nearly 4500 employees would be transferred to the FIH Mobile. Also the Microsoft Mobile Vietnam, its manufacturing facility in Hanoi, Vietnam would be handed over to FIH Mobile.

As of now Microsoft seems to be oblivious of the path it wants to follow in the handset industry. After gradually killing Nokia’s smartphone business, the company now seems to be putting an end to the feature phone segment – something that the company was once sworn by. As such, the Nokia 230 unveiled last year could possibly be the last feature phone from the company.