Nokia on Wednesday announced its return to the mobile phone and tablet business in connection with a larger agreement by Microsoft to sell its entry-level phone business to HMD Global and FIH Mobile for US$350 million.
Nokia Stages Smartphone Comeback
Under the deal, Microsoft will sell its Hanoi, Vietnam, manufacturing facility to FIH Mobile, a unit of Hon Hai/Foxconn Technology Group. Workers will be given the opportunity to work for FIH Mobile or HMD Global, according to Microsoft.
Nokia will grant HMD, a newly formed company, the exclusive global license to create Nokia-branded phones and tablets for the next 10 years and will receive royalty payments from HMD for sales of those devices, covering both brand and intellectual property rights.
HMD plans to invest more than $500 million over the next three years to support the global marketing of the Nokia devices, which will be paid for by investors and profits from the new business.