Microsoft Sells Nokia For a Generous Price

Microsoft will sell Nokia to a newly founded Finnish company called HMD Global and Foxconn for about $350 million. Even though Microsoft has sold off Nokia, they plan to still produce the Lumia phone, but through Acer and Alcatel instead of Nokia. Microsoft is still able to produce the Lumia because it was not an exclusive model to Nokia. I, honestly, do not care one way or another about this sale Microsoft made. I never, really, payed much attention to the Nokia, anyway. I always thought of the Nokia as a low quality phone that I would never want to buy. Microsoft might as well stop trying to compete in the smartphone business. Nokia is only worth about $30 billion now. Nokia was, at one point, the largest smartphone producer around which was in 2014. Then, the company was worth about $250 billion. Considering Nokia is worth $30 million, Foxconn and HMD are almost stealing the Nokia brand. Surprisingly,  HMD will be the main company to produce the Nokia  instead of Foxconn. HMD is a newly established company that only has 4,500 workers. The business was founded by a former Nokia and Microsoft executive named Arto Numella. Not only will HMD produce most of the Nokia phones to be released in the future, but it will also have full control over how all Nokia phones will be produced and distributed, they will, even, have complete authority over Foxconn. Meanwhile, Nokia will not be producing the phones themselves since HMD is not directly associated with the company. Nokia will be receiving royalties from HMD. Arto Numella will invest $500 million in his newly created company over a three year period to make it possible for the Nokia phone to be sold globally. In addition, he gained the rights from Microsoft to continue to use its software for the Nokia and to be able to continue to brand certain Microsoft phones as Nokia until 2024. The main question is why did Microsoft choose to sell Nokia. Well, Microsoft acknowledged they were struggling in the smartphone business. Last year, Microsoft laid off 7,800 employees and wrote off their investment of Nokia completely, which discontinued the phone for a year. Microsoft seems to have given up, at least for now, to compete in the smartphone business and I think they made the right decision. Even though Microsoft will no longer be producing phones, they will continue to stay strong by continuing to be the software giants we have always known them to be.