Redmond is still committed to the mobile industry

Jul 17, 2015 11:32 GMT  ·  By

Microsoft will focus on three different phone categories in the future, namely value handsets, business devices, and flagships, and it turns out that some of these could be manufactured by Foxconn, at an Indian plant.

A report published by the Times of India reveals that Microsoft is currently negotiating with Foxconn a potential deal that would allow the company to manufacture some new Windows phones at a factory in India, as the Taiwanese manufacturer is looking into ways to boost its production in the country.

According to this report, Foxconn wants to invest no less than $2 billion (€1.5 billion) to build or take over no less than 12 production facilities in India, and one of them could take care of the manufacturing process for some Lumia devices.

Details are missing for the time being, but it wouldn't be too surprising to see Microsoft involved in production negotiations with Foxconn, as the Taiwanese manufacturer is already working with several large companies, including Apple, so with Redmond's increasing focus on high-end devices, Foxconn might just be the right choice.

Building phones in India just makes sense

Foxconn's investments in India aren't surprising either, as the local business is rapidly growing and more companies are moving their production in the country.

Until now, most of the Microsoft smartphones for the Indian market have been built in China, Vietnam, and Finland, but with Redmond's new strategy that's specifically supposed to cut costs and help gain market share in some specific phone categories, building devices locally simply makes more sense.

Microsoft is yet to provide any kind of statement regarding these possible talks with Foxconn, but if they indeed exist, expect some comments on this in the coming months. The first flagships running Windows 10 Mobile are expected to debut together with the smartphone OS later this year, in September or October.