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Microsoft will end up paying Nokia over $1 billion for Windows Phone 7 deal

Written by Andre Yoskowitz (Google+) @ 08 Mar 2011 14:07 User comments (2)

Microsoft will end up paying Nokia over $1 billion for Windows Phone 7 deal Bloomberg is reporting that Microsoft will end up paying Nokia over $1 billion for the recent Windows Phone 7 deal, through development and promotional costs.
"Nokia will pay Microsoft a fee for each copy of Windows used in its phones, costs that will be offset as Nokia curtails its own budget for software research and development," says one of the sources even though the full agreement has not been signed yet.

The deal will last for "over 5 years."

Most analysts have called the deal a winner for Microsoft, who will gain a huge platform boost for a relatively insignificant amount of money. Nokia, on the other hand, has seen their shares fall 25 percent since the announcement, as investors doubt the move will help fix Nokia's faltering market share.

Additionally, margins at Nokia have fallen to just 5 percent in 2010 from 19 percent in 2001.

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2 user comments

18.3.2011 15:03

every phone I have owned from nokia was solid and never broke or had a single problem. I think they will create an awesome line up of phones that will put Microsoft's OS on the same playing field as android and the iphone



28.3.2011 23:37

Every phone I have ever had from Nokia was a piece of trash that hardly did anything due to a terrible OS...nice to see that some things don't change.



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