Microsoft planning $1B ‘bribe’ so Samsung keeps making Windows Phones?

Microsoft Samsung $1 Billion Windows Phone Deal

In addition to mentioning several unconfirmed details about upcoming Windows Phone 9 changes, Russian blogger Eldar Murtazin has also revealed an even more interesting note about Microsoft’s upcoming Windows Phone plans: apparently the Redmond-based giant plans to pay an astounding $1 billion “bribe” to another tech behemoth to ensure that it continues making Windows Phone handsets. “Another ‘good’ news from Microsoft,” Murtazin wrote on Twitter. “Company negotiates with Samsung and offer $1 billion support if vendor will produce Windows Phone devices.”

While this is just a rumor at this point, it wouldn’t be the first time Microsoft puts its cash reserves behind the development of Windows Phone, which is yet to pick up significant market share or profits in a world dominated by Android and iOS. The company paid Nokia $250 million per quarter to adopt Windows Phone, even though the Finnish company “returned” the favor with Windows Phone licensing fees – in March 2013, Nokia revealed that it still had to pay around $650 in licensing fees from that point until the contract expired, at which point licensing fees would surpass Microsoft’s “platform support payments.”

Microsoft did not stop with its Windows Phone spending spree there, deciding to buy the mobile division of Nokia for over $7 billion, a purchase that has received the go ahead from shareholders and industry regulators. Also worth noting is that Microsoft incentivized developers with serious cash to bring their apps to the Windows Phone ecosystem.

As for Samsung, the South Korean company is currently king of the mobile business when it comes to market share, while dividing mobile profits with Apple, although the latter gets the larger chunk of cash each quarter. In addition to its Android and Tizen interests, Samsung already makes Windows Phones handsets and Windows 8 computers.

The company has been known to avoid placing its eggs in one basket when it comes to its mobile business and flooding the market with handsets to match every taste and pocket, so making Windows Phone smartphones may still be in the cards for Samsung for the near future, regardless of whether Murtazin’s rumor is correct or not. One thing that Microsoft is also said to be considering is dropping licensing fees for Windows Phone, which could also be a good enough incentive for interested OEMs to make more Windows Phone devices.

blog comments powered by Disqus