Technology Microsoft to pay $2.6billion to Samsung and others to make Windows Phone

Microsoft to pay $2.6billion to Samsung and others to make Windows Phone

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According to rumour from Mobile Review’s Eldar Murtazin, Microsoft has approached Samsung, Huawei, Sony and other smartphone manufacturers to give $1.2bn, $600m, $500m and $300m respectively to make Windows Phone 8 smartphones in 2014.

“Windows phone 8 in 2014 – Samsung 1.2 bln USD, Sony 0.5 bln, Huawei 0.6 bln, others – 0.3 bln. That’s “support” from MS to develop one (1!) hs” he said on Twitter.

“Microsoft going to pay to each company for creating one wp8 model. No matter how they call this money, it’s not a real business for MS.” he continued.

“For instance, Sony with 0.5 bln from Microsoft already profitable in 2014, will meet internal goals in terms of money around September.” Eldar said.

Android and Apple’s iOS has dominated the smartphone market over the past years with Microsoft lurking at distant third with a market share of about 3.5%.

Microsoft made a deal with Nokia last year to buy it mobile phone business and Nokia presently accounts for majority of smartphones made on the Windows Phone platform.
It is reported that Microsoft has been giving Nokia $1 billion yearly as platform support for making Windows Phone smartphones.

Microsoft’s communications lead Frank X. Shaw has replied to the rumours claiming that the figures are incorrect.

“reality check. Do we do co-marketing with partners? You bet! But these numbers are complete fiction!” he said.


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