With Surface in mind, Microsoft sells feature phone biz, kills Lumia

Microsoft has announced that it is selling its feature phone business and hinted at a possible end to any future Lumia devices, possibly paving way to a totally new Surface Phone.

With the feature phone segment almost dead and a smartphone market dominated by Apple and Android devices, Windows phones have been struggling with just a little over one per cent of the overall market share.

In a statement posted recently on its website, the company said it had reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million.

The statement also added that Microsoft would continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO, thereby providing a clear indication that there may not after all be more new Lumia models. However, Microsoft could be going back to the drawing board to develop a totally redesigned Surface Phone.

According to reports, Microsoft is working on developing the Surface Phone as a device that focuses totally on productivity. The device could hit the market mid 2017.

Just last month, Terry Myerson, Executive Vice President of the Windows and Devices Group, in an internal email owed allegiance to Windows mobile.

"We are currently in development of our next generation products and I wanted to reconfirm our commitment to Windows 10 Mobile. We believe in this product's value to business customers and it is our intention to support the Windows 10 Mobile platform for many years. We have a device roadmap to support that from Microsoft as well as our OEM partners who will also be selling an expanded lineup of phone devices based on this platform," his email said.

Earlier, Microsoft Corp had bought Nokia Devices and Services business for $7.2 billion, announcing the decision just weeks before the then CEO Steve Ballmer left office in 2013 and completing the acquisition in 2014 after the current CEO Satya Nadella took over.  Last July Microsoft finally announced that it was writing off about $7.6 billion

Meanwhile, as part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam — the company’s Hanoi, Vietnam, manufacturing facility.

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