Microsoft to spend $2.6 billion on bribing OEMs to make Windows Phone device

Microsoft to spend $2.6 billion on bribing OEMs to make Windows Phone device

Microsoft is about to complete its acquisition of Nokia and that’s something other Windows Phone makers don’t like. After the deal is closed, the Redmond giant will end-up owning up to 90% of the Windows Phone market, leaving little or no room for competitors.

And that’s not something Microsoft wants. In order to have a thriving eco-system that can compete with Android, it needs multiple vendors offering Windows Phone devices. But with others’ interest veining, Ballmer & Co. need to bribe them to get them back on board.

According to Mobile-Review’s Eldar Murtazin, Microsoft will spend some $2.6 billion to subsidize other handset makers. Of that cash, the biggest chunk goes to Samsung, which will get $1.2 billion, followed by Huawei ($600 million), Sony ($500 million) and others ($300 million). HTC is (un)surprisingly not on the list though it could go home with some money from those $300 million.

As a reminder, at the time Nokia announced support for Windows Phone, it apparently received no less than $1 billion from Microsoft. Now other handset makers want a similar treatment; we’ll see whether all that extra cash will help them sell more Windows Phones…

UPDATE: Microsoft reacted to the news saying they do co-marketing with partners but these numbers are complete fiction.

[Via: Unwired View]

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