While buying the phone manufacturing unit from Nokia, Microsoft had a dream of building a stand‐alone name in the world of the smart phones. Microsoft being working on Windows platforms could never compete with the industry players like Android and iOS and hence became a sick unit for them. Finally Microsoft has announced that it will be selling the phone manufacturing business to FoxConn who have recently bought sharp display too for 350 Million US dollars. The purchase of the complete Nokia unit will be done in association with HMD Global by FoxConn. They have acquired the license of manufacturing the phones and tablets under the brand name of Nokia for the next 10 years
After the acquisition of Nokia by the Microsoft for 7.2 Billion in US Dollars, they hope to be leaders in the market. Nokia was one of the leaders in the market at some point of time and they wanted to continue the same legacy again for the users however unfortunately it could not be done by them. The market was already controlled by Android and iOS by that point of time. It left no scope for them to tackle the users and penetrate the market. The Windows model phone did alright however could never scale up the business. They hardly managed to keep their name in the market. With the lower sales and shrinking profits for the company even Microsoft has lost their interest in the business. They don’t want to handle the pain anymore and have got into complete mood to sell it off completely.
According to the contract being signed by the HMD and FoxConn they have the right to use the brand flagship of Nokia in their products. HMD is planning to invest little over 500 million in Nokia to support their service in the phase of next 3 years.