Microsoft sells Nokia feature phones business

But its Nokia-branded handsets - which are powered by the Series 30+ operating system, making them less powerful than its Lumia Windows phones - will continue to live on.

The division that makes them has been acquired by HMD Global, a new private equity-backed firm, and Foxconn subsidiary FIH Mobile.

Nokia said it had signed a 10-year deal for them to continue using its name.

"Feature phones were never a core part of Microsoft's strategic aim behind the purchase of Nokia's devices business," commented Ian Fogg from the IHS Technology research team.

"Following the Microsoft reorganisation last year, it was clear the feature phone business was an unwanted extra and Microsoft most likely took the first good offer to take the business off its hands.

"While the feature phone market is declining, shipments were still in excess of 400 million units in 2015. The Nokia brand is very strong in certain markets too and HMD will probably target these emerging markets."

Microsoft is being paid $350m (£240m) for the deal, which includes the Taiwanese firm Foxconn taking ownership of a feature phone factory in Hanoi.

About 4,500 workers will switch companies as part of the arrangement, with the deal due to be completed before the end of the year.

Taken From : BBC