Microsoft to pay Samsung US$1 billion to continue making Windows Phone smartphones?

Microsoft

Rumours that Microsoft is actively wooing manufacturers back to the Windows Phone fold appear to be gathering steam. Following reports that it was considering dropping Windows Phone and Windows RT license fees earlier this week, Mobile-review’s Eldar Murtazin has chimed in to suggest that Microsoft is reportedly in negotiations with Samsung to offer it US$1 billion in exchange for the South Korean manufacturer’s continued support of the Windows Phone platform.

It’s unlikely that Microsoft would simply cut Samsung a US$1 billion cheque. Instead, it’s likely to come in the form of financial incentives such as “free” Windows Phone licenses. Microsoft has a similar arrangement with Nokia. Since their 2011 deal that saw Nokia adopt the Windows Phone operating system for its smartphones, Microsoft has provided it with billions in “in recognition of the unique nature of Nokia’s agreement with Microsoft and the contributions that Nokia is providing.”

With its acquisition of Nokia’s Devices & Services division for US$7.2 billion set to close in early 2014, Microsoft may be trying to ensure that Windows Phone does not become a single manufacturer platform.

The talks with Samsung may have born fruit. A report last week suggested that Samsung was readying the SM-W750V for Verizon and that it would be a Windows Phone device.

A report back in October suggested that Microsoft was also willing to cut license fees to convince HTC to resume offering Windows Phone devices. It also suggested that Microsoft was open to the idea of a dual-booting phone offering both Android and Windows Phone.

Should this deal go ahead, it remains to be seen how it would affect Samsung’s efforts with Tizen.



Source : @eldarmurtazin