Microsoft: stop the feature phone, assets sold to FIH Mobile and HDM Global

Microsoft has confirmed the sale of the activities related to the production and sale of feature phones to FIH Mobile, subsidiary of Foxconn, and HDM Global for $ 350 million. The formalization of the news comes after the dissemination of the first rumors about it took place earlier this week.

Under the terms of the agreement, Microsoft acquires FIH Mobile Mobile Vietnam, or the structure of the Redmond home located in Vietnam and engaged in the production of feature phones. Approximately 4,500 employees will be transferred to Microsoft Mobile Vietnam to FIH Mobile and HDM Global, in accordance with local regulations.

Microsoft is now clear in pointing out that the decision to divest its entire assets linked to the production and sale of feature phones will have no effect on the activity of production and sales of smartphones. In this regard, the Redmond points out, Microsoft will continue to develop Windows 10 Mobile and support Lumia devices like Lumia 650, Lumia 950 and Lumia 950 XL and the device of OEM partners such as Acer, Alcatel, HP, Trinity and VAIO.

In the official press release does not explicitly refers to the sale of the brand "Nokia", affixed by Microsoft to feature phones, but the company implicitly confirms that this sale will take place to the extent that states:

Under the agreement, Microsoft will transfer all of its assets related to the feature phones, including brands, software and services, support services and other assets, customer contracts and the supply contracts, in compliance with local laws.

Among the brands, as mentioned, is also on the Nokia brand, which will continue to be clearly managed by the purchasing companies, limited to the feature phone industry. The finalization of the sale, subject to the usual approval process by the relevant authorities, is expected by the second half of 2016.

An assignment evidently motivated by the need to reduce costs due to a branch of activity no longer profitable for the Redmond, accomplices also the dynamics of a mobile market where feature phones are less and less space, replaced by low-cost smartphone. Microsoft had begun to carry on its activities in 2014, after the acquisition of the mobile division of Nokia and the right to use of the Finnish brand to market feature phones (not for smartphones).

For the moment, nothing changes formally into account the activities of production and sale of Windows Phone / Windows 10 Mobile Lumia line of smartphones, however, have been paused, waiting for a relaunch of which could take place significantly not before 2017 with the possible arrival of the above mentioned Surface Phone.