Nokia shoots down a return to phones

Finland's Nokia has shot down reports in Chinese media that it planned on a return to manufacturing phones, according to an official statement released on Sunday.

"Nokia notes recent news reports claiming the company communicated an intention to manufacture consumer handsets out of a R&D facility in China. These reports are false," Nokia said in a statement posted on its website.

Nokia sold its handset business to Microsoft last year and agreed to stay out of the mobile arena until 2016.

While simmering rumors over a mobile return have been put to rest, Nokia has said returning to the smartphone business by brand-licensing is a possibility.