May 19, 2016 11:01 AM EDT
Microsoft's Nokia is one of the company's feature phone asset that's recently been acquired by Foxconn and HMD Global for $350 million. The handset will still use 'Nokia' as the brand name.
According to UniversityHerald, Microsoft has made tough decisions, including the discontinued of Xbox 360. Microsoft selling its feature phone Nokia could be something expected as a part of the company's reorganization.
BBC published a story explaining that Nokia is an unwanted extra and Microsoft core business is never a feature phone. However, the decision to acquired Nokia and then sold it, might be sensed as a blunder in the past by the public.
Feature phone market declines albeit the strong Nokia brand. HMD Global could be targeting a certain market for the phone. The deal allows Taiwanese company Foxconn to have the ownership and there will be 4,500 employees transferring to new company.
HMD Global acquired exclusive rights using Nokia name on its new gadgets. Smart Connect which owns HMD company spokesperson, explains how branding is essential to differentiate mobile phones and the unique asset of Nokia might help improving its sales and marketing.
For analysts, there will be a new interesting case to learn about. Microsoft Nokia case study might analyze how Microsoft bought Nokia in 2014 only to take off in the next few years. The Fortune published an article on Microsoft disastrous move by purchasing Nokia but concluded that it's probably a good move.
As for Nokia's current focus, the feature phone emphasizes on smart health kit and VR cameras along with telecommunication infrastructure. This deal could likely to benefit for the sales especially in countries where Nokia is still in the market.
The Nokia acquisition can be seen as a big bold bets. And in 10 years from now, people should expect some changes in Nokia device.© 2017 University Herald, All rights reserved. Do not reproduce without permission.