Microsoft has announced the sale of its division dedicated to the design of mobile phones entry , dearly acquired from Nokia in late 2013. Foxconn HMD and Global, a company close to Nokia, share the cake for $ 350 million.
Microsoft displays an insolent profitability, but the company managed by Satya Nadella dislikes however keep some income-generating activities in her lap. We saw her recently and get rid of part of the Bing Maps of assets in favor of Uber, and the Redmond giant is not going to stop there.
The entry level n ‘not interested in Microsoft
in buying Nokia mobile activities in September 2013 for $ 5.44 billion, Microsoft not only put their hands on the smartphone of the brand but also on its “features phones”. This is a reminder of unsophisticated devices making links between the office smartphone and simple mobile phones that we knew the early 2000s.
These are generally of entry-level products, generally for emerging markets. They are very far from high-end standards that Microsoft is trying to reach with its Lumia range, with a success that we will qualify at best debatable.
The manufacturer has chosen to get rid of this segment is not interested. For $ 350 million, a company called Mobile FIH so just put your hands on these activities, as well as Microsoft Mobile Vietnam, an entity owns an assembly plant in Hanoi, producing the terminals concerned. FIH Mobile hide behind Foxconn and Nokia, through a company called Global HMD.
Global HMD, a complicated assembly
The tab of Nokia in Global HMD is little noticeable but present. If the company is not presented as a subsidiary of Nokia, it almost akin to it. The HMD Global capital is divided between an investment fund (Smart Connect LP), managed by Jean-François Baril, a former head of Nokia, and some company officials. The board of directors of the company (based in Finland), a Nokia representative also holds one of five seats. For cons, the Finnish giant denies having made or making any financial investment in the company, nor to hold any part.
Global HMD has in turn signed an agreement with Nokia technologies allowing it to use the Nokia name exclusively on mobile phones and tablets “ for the next decade “and” essential patents around cellular standards . ” HMD also promises to invest more than $ 500 million in three years for the development of tablets and Android phones, funded its investors, but also by the sales income of features phones, Foxconn acquired with FIH via mobile.
Meanwhile, Nokia will receive royalties on sales of terminals exploiting its brand. One way to regain a foothold in this market which allows the Finnish group to limit its investments, and therefore risks, while ensuring a minimum income.
Windows 10 Mobile is not dead
It is appropriate to recall that this transaction is absolutely not about Microsoft branch dedicated to smartphone . The Redmond says she “ continues to develop Windows 10 Mobile terminals and support of the range Lumia such the Lumia 650, 950 and 950XL as well as those of partners like Acer, Alcatel, HP, and Trinity Vaio . ”
Do not bother to market aside to Microsoft even if it fails him really. In the fourth quarter 2015, with 4.5 million handsets sold, the US giant does acted as featherweight with a global market share of only 1.1%.
Kevin Hottot
Journalist specializing in the universe video game. Passionate Dogecoin, crowdfunding. Never travels without her pony.
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