Microsoft sells its feature phone business to Foxconn for $350 million

Microsoft has confirmed it will sell its feature phone business to FIH Mobile, a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy, for $350 million. As a result, 4,500 of its employees will transfer to either FIH Mobile Ltd. or HMD Global, Oy.

In a press release{.nofollow}, Microsoft stated it will continue to develop its own smartphone OS, Windows 10 Mobile, and support its current Lumia phones, along with devices that use Windows 10 Mobile from third-party OEMs. The press release made no mention on any plans for future Lumia products, but there are lots of rumors Microsoft is working on new smartphones with its Surface team. The feature phone sale is expected to close sometime in the second half of 2016.

Microsoft acquired its feature phone business in April 2014 when it bought Nokia's Devices and Service division for $7.17 billion. As part of today's announcement, HMD Global revealed it has also acquired the rights from Microsoft to use Nokia's branding on feature phones, and will also use the same brand to make smartphones and tablets for the next 10 years.