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Microsoft reportedly spending $2.6 billion to attract Samsung, Sony, and Huawei

News by Andrew Kameka on Wednesday January 15, 2014.

windows phone news · smartphone news · andrew kameka

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The only companies taking Windows Phone seriously are Microsoft and Nokia, and since Microsoft purchased the Nokia handset division, that leaves only one company that doesn't treat the operating system as an Android afterthought. That could change, thanks to a $2.6 billion fund Microsoft will reportedly use to attract more Windows Phone manufacturers.

Blogger and rumor monger Eldar Murtazin claims that Microsoft plans to spend $2.6 billion to encourage smartphone vendors to get serious about Windows Phone. The money will be dealt out in "support" payments that companies can use to invest in research, manufacturing, and promotion of its products. Microsoft made a similar deal when Nokia switched from Symbian to Windows Phone, but these payments would be considerably higher. Murtazin claims 2014 payments would include:

- $1.2 billion for Samsung
- $600 million for Huawei
- $500 million for Sony
- $300 million for others

There are plenty of reason to believe that Microsoft would invest more money in attracting these companies to participate, though the figures are questionable. Does a company as large as Samsung really need $1 billion to make a phone? Would Huawei, a growing player from China that has already invested in Windows, need $600 million? Why do others - presumably HTC, LG, and some smaller companies - split only $300? What's more likely to happen is that Murtazin is wrong about the exact numbers but right about the basic concept of Microsoft paying companies to support Windows Phone. Murtazin in the past has been right about major points of his stories but missed on the details, and that's likely to be the case here.

Another possible explanation is that the figures touted include discounts on royalties and licensing fees that Microsoft typically collects from anyone selling a Windows product. Regardless of the exact breakdown, it's clear that Microsoft is spending big to kick Windows Phone's momentum into high gear.

source: Eldar Murtazin (Twitter), via: CNET

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Andrew Kameka
Andrew is based in Miami, Florida.

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