News by Dan Seifert on Thursday January 26, 2012.
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Nokia's earnings report from earlier today gave us a little glimpse into its deal with Microsoft to use Windows Phone as its main smartphone platform going forward. It had long been speculated that the deal between the two companies was worth billions of dollars, but now we know that Microsoft paid Nokia $250 million in the fourth quarter alone for its use of Windows Phone.
This first installment is part of a series of "platform support payments" that Nokia says will total billions of dollars over time. Of course, Nokia then has to pay Microsoft royalties to use the Windows Phone operating system on its devices, so the money flows in both directions between the companies.
'Our broad strategic agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft" said Nokia. "We have a competitive software royalty structure, which includes minimum software royalty commitments."
It was earlier reported that Chinese phone maker ZTE pays Microsoft anywhere from $20 to $30 per handset to license the Windows Phone operating system, but today's statements from Nokia lead us to believe that Nokia has a slightly better deal in place for itself. Microsoft and Nokia have not said what the exact royalty fee is for Nokia's use of Windows Phone on its Lumia smartphones, but we would imagine it is significantly less than what ZTE reportedly. [via SlashGear]
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.