February 14, 2011 at 00:21Nokia will receive billions of dollars from Microsoft
When it became known on Friday that Windows Phone 7 would be installed in Nokia phones, many had the idea that the current director of the Finnish company, Stephen Elop, was helping his former Microsoft company for commercial reasons, because he was the eighth largest private equity co-owner of Microsoft .
Nokia shares fell 14% on Friday. But on Sunday, Stephen Elop forced to make excuses issued additional details about the deal. It turns out that Microsoft will pay the Finnish company billions of dollars for using its software.
“This is a nuance that, in my opinion, is not talked about enough,” Elop said. Indeed, this fact changes the matter somewhat. Apparently, Microsoft sees this deal as an investment in promoting its operating system, and hopes to make a profit in the future, when and if Windows Phone gets enough popularity. True, now it is rather difficult to imagine.
Quite normal logic for Microsoft. If a competitor distributes his system for free (Android), then we will also pay extra!
Stephen Elop also added that Google also offered a similar contract for the use of the Android operating system, but Nokia's management considered the conditions offered by Microsoft more favorable.
Additional money will be very useful for Nokia, which will also save significantly by abandoning Symbian. True, this short-term savings could harm the Finnish company in the long run, and the market reaction to this information suggests the same.
Nokia shares fell 14% on Friday. But on Sunday, Stephen Elop forced to make excuses issued additional details about the deal. It turns out that Microsoft will pay the Finnish company billions of dollars for using its software.
“This is a nuance that, in my opinion, is not talked about enough,” Elop said. Indeed, this fact changes the matter somewhat. Apparently, Microsoft sees this deal as an investment in promoting its operating system, and hopes to make a profit in the future, when and if Windows Phone gets enough popularity. True, now it is rather difficult to imagine.
Quite normal logic for Microsoft. If a competitor distributes his system for free (Android), then we will also pay extra!
Stephen Elop also added that Google also offered a similar contract for the use of the Android operating system, but Nokia's management considered the conditions offered by Microsoft more favorable.
Additional money will be very useful for Nokia, which will also save significantly by abandoning Symbian. True, this short-term savings could harm the Finnish company in the long run, and the market reaction to this information suggests the same.