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Foxconn 350 million US dollars acquisition of Nokia as a domestic brandBack

Date:2016-11-02 PCB/FPC news

It is understood that Nokia will soon become a Chinese company, Microsoft will be sold to Taiwan Foxconn. Nokia brand will also be quiet for many years back to the smart phone market.

Nokia (nasdaq: NOAA) has dominated the mobile phone business will be reborn. Microsoft will withdraw from the Finnish telecommunications group acquired two years ago, the functional mobile phone business.

The Windows developer has agreed to sell Nokia's handset division to Foxconn, Taiwan's technology group, for $ 350 million.

At the same time, Microsoft and a newly established Finnish company HMD reached an agreement by the latter in the field of consumer electronics to re-enable the Nokia brand. HMD from Nokia and Microsoft is responsible for telecom services, former executives in charge.

Foxconn will acquire the manufacturing, sales and distribution division of Microsoft's mobile phone business, while HMD will focus on marketing and selling Nokia branded products.

About 4,500 employees will be transferred from Microsoft to Foxconn or HMD. Microsoft will continue to develop the use of its Lumia brand of smart phones. In 2014, Nokia to 5.4 billion euros in the price of poor mobile phone sector to sell to Microsoft.

Foxconn's purchase price highlights, with more than 10 years ago in the mobile phone market dominance compared to the Nokia mobile phone business has declined to what extent.

"Nokia has been worth $ 300 billion, and today, Microsoft hands-on mobile phone business - in fact the same piece of business - the price is 350 million US dollars," venture capital firm Andreessen Horowitz partner Benedict Evans Benedict Evans) posted on Twitter. The purchase price is low, Foxconn "picking up cheap" to do a bargain cheap deal.

Nokia sold its flagship mobile phone business two years ago and surrendered the market to Apple and Samsung, now, the Nokia brand will return to the smart phone market.

Nokia announced on May 18 that it would authorize a company in Helsinki, which is operated by a number of former Nokia executives, to use its brand. HMD Global Oy plans to invest more than $ 500 million. Nokia will not hold shares in the company, but because of brand licensing and intellectual property rights to obtain fee income.

In 2014, after his mobile phone sales to Microsoft, the Nokia brand almost disappeared from the smart phone market, and now battles, and expect the user is still remember and will support them. Nokia has been disdain for the battle to light, but it will face the market will be rolling the iPhone and Andrews camp.

"It's not enough to have a well-known brand in this highly competitive market," says Annette Zimmermann, a smartphone market analyst. "To shake the market and come up with something that will make this ever-changing market come to life Not easy. "

As of 16:46 local time in Helsinki, Nokia shares rose 2.3 percent to 4.64 euros.

HMD was founded by a number of international private equity firms through a fund called Smart Connect LP, funded by HMD's management team. The company will be the former Nokia manager, now Microsoft Asia, the Middle East and Africa, head of mobile devices business Arto Nummela. In addition, Florian Seiche will serve as president of HMD, Seiche is a former Nokia executives, the current Microsoft manager.

HMD will produce smart phones running Android system, while plans to launch the Tablet PC, and more affordable features mobile phone, OEM production will be handed over to Foxconn.

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