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Microsoft denies report that it’s shelling out billions to pay off Windows Phone partners

Microsoft Windows Phone Payouts

Microsoft has denied an earlier report suggesting that the company plans to pay out billions of dollars in 2014 in an effort to ensure that a number of top smartphone vendors release phones powered by the Windows Phone platform this year. According to plugged-in Russian blogger Eldar Murtazin, Microsoft has plans to dole out more than $2.5 billion this year to Samsung, Sony, Huawei and several other smartphone makers to guarantee that they build and launch a single Windows Phone handset each in 2014. The exact purpose of the funds was not detailed. While Microsoft has not denied that payments will be made, the company’s head of communications has gone on record in stating that Murtazin’s report is not accurate.

“Reality check,” Microsoft’s Frank X. Shaw wrote on Twitter. “Do we do co-marketing with partners? You bet! But these numbers are complete fiction!”

Shaw’s post made it clear that Murtazin’s figures are inaccurate and he was clearly hinting that they’re high. Shaw did note that Microsoft participates in co-marketing with its partners, however, where the company will share the cost of marketing products powered by its various platforms. As such, it is possible that deals have indeed been reached with each of the aforementioned companies in order to guarantee that they will release Windows Phone devices this year.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.