Microsoft to pay Nokia over $1 billion to use Windows Phone ’07

“Microsoft Corp. will pay Nokia Oyj more than $1 billion to promote and develop Windows-based handsets as part of their smartphone software agreement, according to two people with knowledge of the terms,” Dina Bass reports for Bloomberg.

“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, said one of the people, who declined to be identified because the final contract hasn’t yet been signed,” Bass reports. “The agreement runs for more than five years, the people said.”

Bass reports, “Nokia shares have dropped 26 percent since the accord was unveiled Feb. 11, reflecting doubts about the move to adopt Microsoft’s operating system, which is less than six months old and has just a few percentage points of market share.”

MacDailyNews Take: Windows Phone ’07 has “a few percentage points of market share?” Says who?

Read more in the full article here.

MacDailyNews Take: You might be a Ballmer if… you have to pay a floundering company over $1 billion to use your mobile OS.


    1. That is the way I saw this too. This is getting sad. Very sad!!

      You have to see Ballmer and Microsoft’s real problem now. Apple is giving away software products (apps) for $4.99 each (or for FREE) that are so superior to the crap coming from Microsoft. There is no money in this for them! APPLE IS SELLING HARDWARE AND APP AND SERVICES ARE JUST THE ICEING!

  1. Actually, all the stuff coming out of Microsoft and Nokia says “Windows Phone” NOT “Windows Phone 7”

    Don’t expect a Nokia / Microsoft phone until Windows Phone 8 ships.

  2. So let me get this straight… Microsoft, the provider of the product/service, is PAYING the customer $1,000,000,000 to use its product/service. I guess that makes sense in up-side-down backward Microsoft world. I want to visit that world and get paid to have dinner at a four-star restaurant.

    The other existing Windows Phone 7 “partners” need to demand equal treatment. Better hurry, before the twin PC Windows/Office cash cows die…

    1. Yup. And as far as Microsoft is concerned, they’ve hit bottom and are digging themselves six foot under. They can only return from the undead by selling productivity apps and other services… Got it. Microsoft needs to get into the porn business!

    2. Microsoft analogous to a four star restaurant???

      Either you live in a depressed city or don’t get out much pal, a sleazy diner would be offended if it was compared to Microsoft.

  3. I gotta admit, I would switch to a Windows 7 laptop, a Zune for my music and an X-Box for a TV hookup for $1,000,000.00

    I understand where Nokia is coming from.

    1. I would buy the devices you mentioned for that much, far less even. But I wouldn’t use them for that much or more. It would be like getting $1 billion and being old I’d have to live my life in a rat infested mobil home and could only have a 13″ black and white tv. If I had $1 billion I’d want to buy and use high end products, not cheap crap.

  4. Using WP7 is better than Android since Microsoft pays you. Free is no longer good enough. I mean, Microsoft paid Verizon $500M to put Bing on their smartphones, so of course Microsoft is paying Nokia.

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