Nokia abandons India factory Nokia X to be produced in China

Nokia will abandon its mobile phone factory in Chennai, India, and make Nokia X smartphones in China's mobile phone factories, according to a new report. Earlier, the government ordered Nokia to pay a huge sum of 210 billion rupees in exchange for a tax dispute, in return for a thaw at Nokia's mobile phone factory in Chennai. Nokia's mobile-phone factory transfer is not surprising, after Nokia has favoured its new Vietnam mobile phone factory and rebalanced its plant distribution program. Nokia to build new Android phone production base in China. Given the continuing entanglement of Indian authorities, it is no longer feasible for Nokia to produce handsets in Chennai. It all started when the Indian government froze Nokia's assets in India last year. Although India soon returned all of Nokia's assets, the High Court in Delhi, India, ruled that Nokia would pay an extra fee. Shortly after rejecting Nokia's appeal against Delhi's High Court decision, the state authorities in Tamil Nadu, India, ordered Nokia to pay more in Friday to replace Nokia's mobile phone factory in Chennai. Nokia made clear in Sunday that the ongoing dispute would not affect its takeover deal with Microsoft. Nokia X is the company's first mobile phone with an Android operating system. The phone has been launched in many markets, including India, and has already made up to 4 million upfront orders in China. Nokia X will be launched in the Chinese market next week.