Foxconn Electronics has announced the acquisition of Microsoft Mobile Vietnam Ltd., after purchasing it for $22 million.
Chief Expertise, a unit within one of the company’s subsidiaries, will now take over Microsoft Mobile Vietnam’s industry operations. The deal was signed last week and finalized yesterday, after the unit’s official acquisition of the industry assets for the disclosed amount.
The industry unit “Nokia Vietnam Ltd.” was purchased two years ago by Microsoft from Nokia, after the major $10 billion takeover deal with the former mobile phone industry giant.
Foxconn plans to use the newly acquired industry assets to locally produce smartphones and feature phones within the country.
Microsoft´s final Goodbye to Feature Phones
The announcement of Foxconn’s takeover of Microsoft’s mobile phone industry assets in Vietnam was made as early as last May. In an agreement with Finnish-based HMD and Foxconn subsidiary FIH mobile, Microsoft offered to sell its feature phone business unit for $350 million. The purchase is scheduled to completely close in the latter half of 2016.
Ironically, despite the recent deal finally placing Microsoft off the feature phone industry, the very same business units actually made more money for the company last year.
Regardless, this is clearly yet another step in the tech giant’s current plan to bolster its current Windows phone marketing strategy. This is further evidenced by the also relatively recent announcement by the company to continue support for its older smartphone lineups.