Microsoft might be selling Feature Phone business to Foxconn
It is no secret that Microsoft is not doing well in Mobile Business, The recent decline is sales have suggested that Microsoft needs a new strategy to revive the Mobile business back to the days of Nokia Lumia Series. But the new rumor suggests feature phone segment being sold to Foxconn. (only feature phone not smart phone segment)
Now a new rumour by Chinese site VTech states that Microsoft is planning is shutter their feature phone business, which sold only 15 million handsets in Q1 2016, and license the Nokia brand to Foxconn. Microsoft has rights to the brand for feature phones up to 2024.
At the same time VTech reports that Microsoft will fold the rest of the Microsoft Mobile business (the Lumia smartphone business) into the Surface team and will likely lay off 50% of the current staff of Microsoft Mobile. The division has already suffered more than 18,000 losses since its sale to Microsoft in 2014.
While we do not know VTech’s pedigree when it comes to such rumours none of the items would come as much of a surprise. Microsoft has been emphasizing their 3rd party OEM business and have been concentrating on the business and enterprise segment for Windows Mobile delivery, rather than the consumer segment which the feature phone business represents.