Nokia and Microsoft today put in motion a series of deals that may eventually lead to Nokia-branded handsets returning to the market.
Microsoft has agreed to sell its feature phone business to FIH Mobile Limited, a subsidiary of Foxconn, for about $350 million. The deal will include the transfer of select assets, such as manufacturing facilities and about 4,500 employees.
At the same time, Nokia has agree to license its brand to Finland-based HMD global Oy, which has partnered with FIH Mobile to make smartphones and tablets.
HMD expects to spend $500 million over the next few years to increase its ability to make and market mobile devices. Nokia said in addition to branding rights, it will supply HMD with cellular standard essential patent licenses in return for loyalty payments.
Nokia itself will not invest in HMD. FIH Mobile’s parent company, Foxconn, manufacturers the iPhone for Apple.
