Buying Nokia isn’t enough for Microsoft to satisfy its Windows Phone 8 agenda as it seems to be offering a handsome $1.2 Billion to Samsung for developing a Windows Phone 8 handset. To refresh you on the topic, before Microsoft bought out Nokia’s phone division it was subsidizing them with $1 billion a year as an incentive for Nokia to go with Windows Phone over Android, but now they seem to be repeating the trend with Samsung, though this time its just for making a single Windows Phone 8 handset. Eldar Murtazin (editor-in-chief Analyst for mobile-review.com) tweeted as –
Microsoft going to pay to each company for creating one wp8 model. No matter how they call this money, its not a real business for MS. Windows phone 8 in 2014 – Samsung 1.2 bln USD, Sony 0.5 bln, Huawei 0.6 bln, others – 0.3 bln. Thats “support” from MS to develop one (1!)hs. For instance, Sony with 0.5 bln from Microsoft already profitable in 2014, will meat internal goals in terms of money around September
Now according to this Samsung seems to have raised the bar a bit high as $1 Billion is now $1.2 Billion for them, though their dominance in the Smartphone area is nothing Microsoft can argue with. Other manufacturers like Sony and Huawei are also getting $0.5 and $0.6 Billion for the same deal, while HTC might or might not be the part of Others for the $0.3 Billion share (with their current situation they should be). Well its not like paying manufacturers to make WP 8 devices will make them Sale in huge figures too but a little contribution from all major players is what Microsoft seems to be focusing on. Stay tune for more updates on this subject and feel free to drop a comment.