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Old 01-27-2012, 06:00 AM
Nurhisham Hussein
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Join Date: Feb 2007
Posts: 3,111
Default The Value Of Microsoft To Nokia

"Microsoft paid Nokia $250m in Q4 2011 for adopting Windows Phone, the Finnish company's financial results today have revealed, the first of a "platform support payments" scheme expected to eventually account for billions of dollars. The two companies have always declined to put an exact figure on the "significant investments" Nokia would receive, though this new stat lends weight to earlier talk of over a billion in Microsoft subsidies."

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Talk about getting paid - what kind of reward do you think would a CEO get from his shareholders, if he got another company to pony up a billion greenbacks? Conversely, what should the shareholders of Microsoft think of a billion dollars in cash going to somebody else, who isn't even a big name in the US (and losing ground everywhere else)? Still it shows the kind of lengths Microsoft, or should I say Steve Ballmer, will go to to get WP7 into wider circulation. As much hammering as Nokia has taken in the last couple of years, they're still a big presence in most major and emerging markets. This is a gamble, but given the competition, it's probably no time for half measures.

"A planner is a gentle man, with neither sword nor pistol.
He walks along most daintily, because his balls are crystal."
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Old 01-27-2012, 09:45 PM
Join Date: Sep 2005
Posts: 2,341

I know Google built an empire by offering things for free, but paying someone 1 billion dollars a year to use you product is taking the idea to a completely new level. It seems desperate. Let's hope it pays off for them in a few years.

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Old 01-28-2012, 05:30 PM
Join Date: Apr 2007
Posts: 11
Default Not Exactly a Success Story

Microsoft and Nokia are crowing about "selling" 1,000,000 phones but if you look at the subsidy $$, you'll see Microsoft paid Nokia $250US for every phone so probably, Nokia gave the phones away. If you were a carrier and Nokia offered you free phones (nor nearly free) you would stockpile a lot of them.

How many were actually activated? Since neither Nokia nor Microsoft will say, it is probably a very small fraction.
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