Microsoft acquired the mobile phone division of the Finnish tech firm Nokia in 2014, now the Redmond tech titan is selling the division, as the sales of its handsets have been dismal. This time fans of Nokia can again avail Nokia-branded devices running on Android.
Since it acquired Nokia's mobile phone division, Microsoft has been manufacturing only low-end devices, which failed to entice customers. Now, the company is set to sell the loss-making division to a Finland-based tech firm named HMD Global for $350 million. While HMD Global may seem to be an unfamiliar name, it is actually owned by the Redmond tech firm's longtime partner Foxconn, Tech Times reported.
HMD Global will be reviving the Nokia handsets that will run on Google's Android operating system, instead of the original Symbian OS of Nokia. In addition, HMD Global will also absorb the entire 4,500 former employees of Microsoft's mobile phone division. On the other hand, Microsoft will merge its Lumia division with its Surface team.
However, Nokia Technologies itself will not be making these Android-powered devices. In fact, the Finnish company just licensed HMD sole use of the Nokia brand on phones as well as tablets worldwide for the next 10 years, a post by Nokia stated. Therefore, though the new devices will bear the "Nokia" brand, and be powered by Android, they will not be made by the Nokia itself.
Meanwhile, HMD Global aims to use the advantage of Nokia brand's global reach and popularity to make as well as market the beautifully designed, premium devices worldwide. HMD Global has already spent several millions in its preparation to make the upcoming Nokia phones and now it plans to invest over $500 million in the next 3 years with a view to market the new breed of Nokia phones and tablets globally.
In a statement, Nokia Technologies President Ramzi Haidamus said that the deal between Microsoft and HMD Global and the subsequent agreement between Nokia and the Foxconn-owned company mark the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name.
Watch "Nokia back to market with Android powered phones" below:
