Microsoft to cough up $1bn to Nokia in WP7 deal

Darren Allan

March 8, 2011

Last month, when Nokia announced a partnership whereby it was to adopt Windows Phone 7 for upcoming smartphones, we openly wondered exactly what was in it for the Finnish company. Given that WP7 hasn’t exactly set the world alight since its launch late last year.

And now we know: A billion quid. Yes, Microsoft is forking over a cool $1 billion to Nokia as one of the terms of the still unsigned partnership. This is according to sources over at Bloomberg.

However, Nokia will pay a licensing fee for every copy of Microsoft’s OS used on its handsets, which will offset that large lump sum to some extent. Although Bloomberg reckons Nokia intends to balance this out by cutting its R&D budget, which will obviously be feasible given that they now have a new ready-made platform to play with.

Whether that platform will be any more fireproof than Symbian is another question. Not only has Windows Phone 7 been suspect in terms of initial sales figures, but the very first update hitting serious technical hitches on some smartphones hasn’t exactly inspired confidence.






 

Comments in chronological order (2 comments)

  1. Alex says:

    I am a little lost here!Does this mean they are phasing out Symbian?!?!? That sounds like a monumental error to me!

  2. Darren Allan says:

    Not yet, it’s more a case of introducing some Windows Phone 7 handsets now… and then perhaps phasing Symbian out in the future, slowly.

    Nokia is still expecting to shift a *lot* of Symbian handsets over the next couple of years…

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