Microsoft is about to pay $ 1 billion (700 million euros) to promote and develop for Nokia smartphones running Windows 7, according to information from Bloomberg. The contract between the two companies, which would be on the verge of being signed, also provides that Nokia pays Microsoft a fee for each license Windows Embedded Phone on its phones.
According to the sources Bloomberg, Microsoft would also hand over various patents of Nokia, whose applications for mapping and location-based Navteq. The two companies had announced last month their partnership for the development of Nokia smartphones running the Microsoft OS, while the market share of Nokia phones and Symbian OS home continues to erode the face of competition from Apple (IOS) and Google (Android).
But the financial terms of the agreement, which should last five years, were previously not known. FALL OF ACTION NOKIA A welcome breath of fresh air for financial Nokia, whose action has unscrewed from 26% since announcing the partnership with Microsoft, the markets are wary of showing this unexpected marriage.
Nokia is also facing the drop in operating margin: 4.9% last year, against 19% in the early 2000s. According to one analyst quoted by Bloomberg Nordea Bank, Nokia would be forced to reduce its budget by one third in research and development in 2011 and 2012. Microsoft declined to comment on information from Bloomberg, while Nokia said that the final agreement was not signed. 
According to the sources Bloomberg, Microsoft would also hand over various patents of Nokia, whose applications for mapping and location-based Navteq. The two companies had announced last month their partnership for the development of Nokia smartphones running the Microsoft OS, while the market share of Nokia phones and Symbian OS home continues to erode the face of competition from Apple (IOS) and Google (Android).
But the financial terms of the agreement, which should last five years, were previously not known. FALL OF ACTION NOKIA A welcome breath of fresh air for financial Nokia, whose action has unscrewed from 26% since announcing the partnership with Microsoft, the markets are wary of showing this unexpected marriage.
Nokia is also facing the drop in operating margin: 4.9% last year, against 19% in the early 2000s. According to one analyst quoted by Bloomberg Nordea Bank, Nokia would be forced to reduce its budget by one third in research and development in 2011 and 2012. Microsoft declined to comment on information from Bloomberg, while Nokia said that the final agreement was not signed.
- Microsoft Nokia: 5 year deal, royalties, billion dollar payments, not signed yet-Businessweek (07/03/2011)
- Microsoft to pay Nokia over $1 billion in smartphone deal (07/03/2011)
- Microsoft's contract with Nokia rumored at $1B | Microsoft - CNET News (08/03/2011)
- Microsoft and Nokia's Billion Dollar Handshake (07/03/2011)
- Microsoft Seeding Windows Phone 7 On Nokia With A Billion Dollars Up Front (07/03/2011)
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