Why Nokia (NOK) Stock Is Down Today
Nokia (NOK) is falling Tuesday after announcing it will suspend phone manufacturing at its plant in Chennai, India.
NEW YORK (TheStreet) -- Nokia (NOK) - Get Nokia Oyj Report was falling 2.1% to $8.34 Tuesday after announcing it will suspend phone manufacturing at its plant in Chennai, India.
The Finnish company sold its mobile phone business to Microsoft (MSFT) - Get Microsoft Corporation Report in April, but had to keep the Indian facility due to a tax dispute. The plant continued manufacturing phones for Microsoft on a contract basis.
"Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from Nov. 1," Nokia said in a statement. "In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility."
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