Foxconn is now the owner of Microsoft’s feature phone division

Microsoft has finally confirmed that the company is selling its feature phone division to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million. As a part of this deal, Microsoft Mobile Vietnam, the company’s manufacturing facility in Vietnam, will also come under FIH Mobile. Once the agreement is done, almost 4,500 company employees will get the opportunity to work with FIH Mobile Ltd. or HMD Global, Oy,

Under the agreement, all of Microsoft’s feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements, will be transferred to FIH Mobile. The company, however, is still committed to work with Windows 10 Mobile operating system and launch handsets running the company’s own operating system.

The company said in the press release:

Microsoft will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.

This should give company some time to think more seriously about where its mobile division is going. What are your thoughts about this deal?

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What are your thoughts about this deal? Is Microsoft slowly getting rid of their smartphone business?