HMD is a newly created company that was founded for the goal of reviving the smartphone vendor, according to Nokia.
The complicated arrangement with Foxconn gives HMD the capabilities to quickly become a significant player in both the smartphone and feature phone markets, while it boosts Foxconn's grip on outsourced manufacturing as well as extending its reach into supply chain and distribution. Windows Mobile was stuck at.9 percent in China, practically irrelevant. The deal between Microsoft, Foxconn and HMD is expected to close in the second half of 2016.
With the new deal, Nokia eyes some new revenues from its still valuable consumer-brand, without having to bear the financial risks related to it. It plans to offer higher-end smartphones and tablets later.
Of course, the Finnish company never really went away, we just stopped caring about the colorful Windows Phones being turned out under Microsoft's ownership, especially when they repeatedly proved less capable and exciting than similar Android and iOS offerings.
Foxconn previously claimed that its spending of over NT$110 billion (US$3.356 billion) to acquire a 60% stake in Sharp is purely an investment project rather than an acquisition deal and that Sharp will continue to keep its brand and operate independently.