Has Microsoft offered Samsung $1B to produce WP8 devices ?

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Has Microsoft offered Samsung $1B to produce WP8 devices ?

Microsoft is reportedly taking steps to diversify its Windows Phone eco-system by offering Samsung a cool $1 billion per year to produce devices that run on Windows Phone, rather than just Android and its in-house project, Tizen.

Mobile Review’s Eldar Murtazin, who isn’t shy when it comes to gossip, claims that the Redmond, Wash.-based company has made an offer to Samsung that is not dissimilar to the one it originally made to Nokia, which is something along the lines of “start churning out Windows Phone devices, and receive $250 million per quarter in ‘platform support payments.’”

Eldar Murtazin
Eldar Murtazin

As it stands, Nokia’s Lumia series accounts for 90 percent of all Windows Phone device sales, and Microsoft is reportedly very unhappy about the prospect of being solely responsible for the lion’s share of hardware shifted. That, of course, will be when its takeover of Nokia is ratified in the very near future.

Some predict that current hardware partners HTC, Huawei and Samsung may turn on Microsoft after the buyout, leaving the company to deal with marketing Windows Phone itself, while they concentrate on the more profitable Android side of the marketplace. Meanwhile, Microsoft is focusing on a new, expanded deal with Samsung, the company that has established itself as one of the world’s leading manufacturers in recent years, as that is vital in helping it stay ahead of the curve.

Naturally, in matters of big business, there has been no public comment from either party, but the news that Samsung is reportedly hard at work on a

New Windows Phones 8 Device would suggest that the carrot payment has, at the very least, been seriously considered.

After all, it could pay off outstanding monies owed to Apple in the wake of the recent patent wars, without having to dip in to its own operating funds. In return, all Samsung would have to do is what it does best: produce a top-quality smartphone that the public will want to buy.

 

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joshua.O.

joshua.O.

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