Microsoft's deal with Nokia was widely seen as a win win for both companies because they both needed each other. Nokia's once dominant and untouchable position at the top of the cell phone market was giving way to Apple and Google, and Microsoft was completely left out of the smartphone game for awhile. No details were given at the time of the deal, but now Nokia's financials shed some light on the deal between the two companies.
Nokia reported that Microsoft paid them $250 million in Q4 2011. The payment was the first of the “platform support payments” that are expected to eventually account for billions of dollars.
It looks like Nokia could be paying far less to use Windows Phone than other handset makers, which gives them a big advantage. Is 2012 the year that Microsoft and Nokia climb back into the smartphone market in a big way?
Nokia reported that Microsoft paid them $250 million in Q4 2011. The payment was the first of the “platform support payments” that are expected to eventually account for billions of dollars.
“Our broad strategic agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft” Nokia said in its results today. ”We have a competitive software royalty structure, which includes minimum software royalty commitments.”
It looks like Nokia could be paying far less to use Windows Phone than other handset makers, which gives them a big advantage. Is 2012 the year that Microsoft and Nokia climb back into the smartphone market in a big way?
