Microsoft paying Nokia $1 billion to make Windows Phone devices
Publish date: 08 March 2011 by Hanleigh DanielsAccording to
Bloomberg Businessweek, Microsoft is going to fork over north of a $1 billion to Nokia, in order for the Finnish manufacturer to promote and develop Windows-based smartphones. This has been revealed to the paper by “two people with knowledge of the terms”.
Nokia on its part, will pay Microsoft a licensing fee for every of Windows Phone OS that it utilises in its phones, and according to the Bloomberg’s sources these costs that will be offset since Nokia cuts back on its budget for software R&D.
The latter is because Windows Phone OS will become Nokia’s primary smartphone OS, with both Symbian and
MeeGo (co-developed with Intel) playing second fiddle to the Redmond-based company’s OS.
The two companies haven’t put pen to paper on the final contract as of yet, but the final agreement will be in effect for over five years.
