Recent Tech News

For the latest Technology News and Reviews

Microsoft, 1 billion per year for Nokia

Microsoft settles Nokia coffers 250 million dollars per quarter in terms of stimulus for the use of the Windows Phone operating system.

Up to now were not disclosed terms of agreement that led to the handshake between Stephen Elop, CEO of Nokia, and Steve Ballmer, Microsoft CEO. Details emerge in the context of the quarterly communication of the European group and set the framework of a composite partnership and structured around the patent and the incentive that Microsoft has turned to the other party to convince the use of Windows Phone on their devices.

nokia windows phone

According to the statement, Nokia stood at 250 million dollars that Microsoft has provided the incentive for the group to accept the great leap from Symbian to Windows Phone. This figure, however, worthy of further study: Nokia explains that this is due to the incentive in the reference quarter, which seems to foreshadow additional payments in the coming months, up to an amount equal to 1 billion per year (720 million euros). If so, it would be curious to read this figure as a transfer process involving the licensing agreements collected by the use of Android and the stimulus offered by Microsoft to Nokia.

The sum is part of a deal, however, much more complex, in which both parties have staked their assets first to arrive at an agreement that rewards the product. Both Nokia and Microsoft have strong interest in creating a value proposition that carve out a role in the world of smartphones before the Apple/Google duopoly can close down the road to any proposed competitor. As indicated by Stephen Elop, patents put in by Nokia enable the group to check a license fee to Microsoft for Windows Phone lower than the competition, putting the team in Europe to compete more effectively against Samsung, HTC and the other big players in the parallel market already in partnership with Redmond.

So far Nokia have sold over 1 million Lumia devices, the group prepared to launch its own series in new countries since the early months of 2012, but the news does not seem to be sufficient to compensate for the free fall of the numbers recorded by Company: -31% on the devices sold, -21% in revenues. This is the cost of the jump from the platform, something that Stephen Elop had widely expected and led already well ahead of analysts lowered their estimates.

The choice will be judged Nokia a few months, as the first Lumia 900 U.S. will be in the hands of users and the series has brought to Europe something more than just Lumia 800. Meanwhile, shares jump by about 7 percentage points, thus rewarding the steps taken and how the transaction taking place.

, , , , , , , , , , , , , , , , , , , , ,