Microsoft today announced that it has agreed to sell its entry-level feature phone business to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group and and HMD Global for $350 million. FIH Mobile will also acquire Microsoft Mobile Vietnam, it’s manufacturing facility in Hanoi, Vietnam.
As part of the deal, 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. After the deal is complete, about 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile or HMD Global.
Microsoft released several features phones with the Nokia branding, even after it was reported that it has killed the feature phones along with the Nokia X Android phones. Looks like the Nokia 230 that was introduced back in November last year will be the last feature phone from Microsoft.
Microsoft said that it will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO. The deal is expected to close in the second half of 2016.