In its bid to return to the mobile phone business, Nokia Technologies has signed an agreement with HMD, a new private equity-backed firm, and Taiwan-based Foxconn subsidiary FIH Mobile, to grant HMD an exclusive global license to create Nokia-branded mobile phones and tablets that will run on Android OS.
As part of the deal, HMD will acquire Microsoft's feature phone business for $350 million which includes Microsoft's Vietnam-based manufacturing facility.
HMD intends to invest over USD 500 million over the next three years to support the global marketing of Nokia-branded mobile phones and tablets, funded via its investors and profits from the acquired feature phone business.
HMD would be led by CEO, Arto Nummela who has held senior positions at Nokia and who is currently the head of Microsoft's Mobile Devices business for Greater Asia, Middle East and Africa, as well as Microsoft's global Feature Phones business.
Ramzi Haidamus, president of Nokia Technologies
Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets.
Arto Nummela, CEO-designate of HMD
We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers.
