Nokia still scoring financially from Windows Phone deal, but not for long

Nokia still scoring financially from Windows Phone deal, but not for longIt somehow seems right that when thinking about who is paying who in Microsoft's deal with Nokia for the latter's exclusive use of Windows Phone, the answer is "they both are".

After all, are there two closer tech CEO buddies than the Two Steves, Ballmer and Elop?

In a Nokia financial statement, the company headed by former Microsoft executive Stephen Elop has revealed that it will pull in a full $1bn this year from Microsoft for its smartphone platform exclusivity, as per the original agreement between the firms.

However, Nokia for its part gives back a heap of cash in the other direction in royalties based on actual unit sales of Nokia Windows Phones.

And while this year Microsoft will still give more than it receives, Nokia's statement reckons by the end of the agreement between the two firms Nokia's payments to Microsoft will exceed what has come the other way by around €0.5bn in total.

By my reckoning that suggests the deal between Nokia and Microsoft has another two, more likely three, years to run (based on projected sales increases and what they might mean for the overall balance of payments between Microsoft and Nokia.

The obvious question, of course, is what comes next? In the end, Only time will tell.

Via PC Pro

Read more about: Windows Phone

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15 comments

Pondlife  Mar. 8, 2013 at 18:49

I think that's more than long enough to put Nokia in serious trouble

Pondlife  Mar. 8, 2013 at 19:01

When you said not for long I thought they might be able to get rid of the lego os imminently.

mightyforest  Mar. 8, 2013 at 19:09

wp will have increased share of the mobile market then, a new deal with better phones. Death to the bug ridden droid and out of date sapple

Pondlife  Mar. 8, 2013 at 19:19

Yeah yeah, so they keep saying. Seriously trying to say wp is bug free?

mightyforest  Mar. 8, 2013 at 19:33

no but hell its more secure than android, hence why company's are slowly moving to wp8

Pondlife  Mar. 8, 2013 at 19:35

You are funny

mightyforest  Mar. 8, 2013 at 19:38

sorry, guess we talking 2 things their really, i was kind of talking about security, but accidentally mentioned buggy aswell, but i guess im right on both accounts, security is what stops companys investing in android. people live with buginess, i bet 60 million samsung galaxys are reset every day :)

JanSt / MOD  Mar. 8, 2013 at 21:34

Agree...

Pondlife  Mar. 8, 2013 at 21:40

I bet they aren't. I'll bet Nokia wish they could sell that many Lumias anyway..

And Jan likes rebooting phones anyway ;)

Pondlife  Mar. 8, 2013 at 21:48

Will those be the same companies that left their computers using ancient buggy insecure versions of IE for years?

madstock  Mar. 8, 2013 at 22:04

Will those be the same companies that left their computers using ancient buggy insecure versions of IE for years?

Mall of America (switched from Blackberry) & Coca-Cola (in selected regions to start) are the first couple to have announced a partnership.

JanSt / MOD  Mar. 9, 2013 at 06:50

Madstock - I lost track... Are they switching to WP or to Android?

mightyforest  Mar. 9, 2013 at 09:15

switching to wp jan, i work for one of the biggest company's in the uk and we have switched to wp

Pondlife  Mar. 9, 2013 at 12:17

And that amounts to how many 100s of units?

Pondlife  Mar. 9, 2013 at 12:18

Will those be the same companies that left their computers using ancient buggy insecure versions of IE for years?

Mall of America (switched from Blackberry) & Coca-Cola (in selected regions to start) are the first couple to have announced a partnership.


What's the betting they are getting rather nice incentives

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