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Microsoft receives less than $10 per Nokia Windows Phone sold

$10 - something Microsoft isn't even making per Nokia Windows Phone device sold.

@anthony256
Published Tue, Sep 3 2013 6:32 AM CDT   |   Updated Tue, Nov 3 2020 12:21 PM CST

Maybe this is one of the driving forces behind Microsoft's acquisition of Nokia's Services and Devices division today, in that the Redmond-based company isn't even making $10 per Windows Phone-based Nokia device sold.

Microsoft receives less than $10 per Nokia Windows Phone sold | TweakTown.com

Part of it's "rationale for the deal", Microsoft revealed that under its current deal with Nokia, it receives less than $10 per phone in software royalties. This would mean that if Windows Phone were to overnight, somehow, with maybe a wish from a genie, become the number one mobile OS in the world and sell millions of handsets through Nokia, it wouldn't exactly equal huge money for Microsoft.

So while people might be looking at Microsoft taking a big risk acquiring the Services and Devices division from Nokia, in the long run it obviously hopes it'll help them. Microsoft has also said that Nokia's Windows Phones have a gross profit margin in the range of $40 per phone. The Redmond-based software giant is also signing a rather large cheque to Nokia for "platform support", which is kinda like a bribe so that Nokia goes all-in with Windows Phone instead of Android.

The next 12-18 months should be an interesting time for the mobile world, and as the Mobile Devices Editor of TweakTown, I can tell you that I'm incredibly excited.

NEWS SOURCE:allthingsd.com

Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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