Due to weak mobile phone sales, Microsoft has decided to close the unit for their production, and the Nokia brand to convey the licensing agreement, Foxconn is the largest assembler of iPhones. This is reported by informed sources in China.
Under the terms of the deal to buy the division of Nokia Devices and Services completed in 2014, Microsoft will own the rights to the Nokia brand until 2024.
Confirming rumors about the upcoming release of the smartphone Surface Phone, the media reported that after the closure of the group for the production of feature phones, the rest of the division Microsoft Mobile, Lumia engaged in production, will be converted to a Surface group. About half of the employees of the division Microsoft Mobile will be dismissed.
As previously indicated, the experts, Microsoft brings in more revenue licensing patents to Android handset manufacturers than sales of Windows-based smartphones. Probably abandoning the “dumb” phones, Microsoft will be able to focus on the smartphone business — the gadgets running on Windows 10 Mobile. The success of the Surface Pro tablet has revived the belief that Panos Panay and his team are able to create a more impressive smartphone, than is available in a range of models.
After the acquisition by Microsoft of Nokia’s mobile division, renamed to Microsoft Mobile, lost due to layoffs of 18 000 employees. If the rumors prove true, the number of dropouts will increase significantly.