According to South China Daily, Nokia will relocate its R&D center to Sichuan, China [Google Translate].
This will be an earthquake for the smartphone market.
The latest Android phones being made in China are lust-inducing powerhouses with large, full-HD (or even quad-HD) screens, the latest CPUs from Qualcomm or MediaTek, at least 3GBs of RAM, and hi-res cameras from Sony. At prices that undercut global brand names.
Combine that with Nokia R&D, the Nokia brand and quality control, its worldwide cellphone expertise, and next year will see some stunning alternatives in the Android phone market that will finally contain radios for all global frequencies. China will begin to bust out of its China-only smartphone market in a very big way.
April 26, 2015 Update: Nokia says No. Nokia reaffirms it currently has no plans to manufacture or sell consumer handsets