Skip to main content

Microsoft rumored to pay Nokia $1 billion in Windows Phone deal

microsoft-nokia-dealMicrosoft will reportedly pay Nokia more than $1 billion for the promotion and development of a Windows Phone operating system for their highly-popular handsets, reports Bloomberg Businessweek. The news comes from “two people with knowledge of the terms,” who refused to be named.

According to the deal, Microsoft will receive payment from Nokia for every copy of Windows used on one of their devices. That payment will be offset, however, by money Nokia will save in research and software development costs — which will now be covered by Microsoft, who is currently developing a new version of Windows to follow Windows Phone 7.

News of the $1 billion payment from Microsoft comes as little surprise to anyone who’s been paying close attention to the deal, as Nokia CEO Stephen Elop announced at this year’s Mobile World Congress in February that Microsoft had committed “billions of dollars” to bring Windows Phone OS to Nokia, which still holds the title of “world’s largest handset maker, despite sagging numbers.

Microsoft allegedly agreed to pay such an amount to keep Nokia from choosing Google’s Android OS as its operating system of choice.  

The two technology giants hope that by joining forces they can fight back the current bludgeoning they’re receiving from Apple’s iOS and Android in the smartphone arena. Ominous signs have already begun to emerge, however, with Nokia shares having already dropped 26 percent since its deal with Microsoft was announced on February 11.

Rumors indicate that Nokia will not release any phones based on the Windows Phone OS — which the company has adopted as its primary operating system — until late this year, possibly October.

The deal, sources say, is expected to last at least five years. To put that in context, Apple will presumably be on iPhone 10 by the time the Microsoft-Nokia partnership expires.

Andrew Couts
Former Digital Trends Contributor
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
The camera on this Android phone is confusing, but I love it
The back of the Tecno Camon 30 Premier.

I’m all for a lot of detail, and love to hear about the new technology that’s inside a smartphone I’m about to test, but when I have to search for an explanation of what something means, it’s not a good start. The Tecno Camon 30 Premier suffers from this problem, as it has a lot of cool camera tech that is explained in a mystifying way.

So, I thought the best thing to do was to just ignore the tech speak and find out if it takes great photos the old-fashioned way.
What's the problem?

Read more
The 5 best phones with IR blasters in 2024
The OnePlus 12's camera module.

IR blasters used to be a common component in smartphones, with big products from Samsung, OnePlus, and TCL giving users access to the cool gadget. Phones equipped with IR blasters could be used as a universal remote for your other electronics, making it easy to control your gear without the need for their default controller (which might be clunky and unintuitive to use).

Fast forward today, and attempting to find a smartphone with an IR blaster is shockingly difficult. What was once common technology is now relegated to just a handful of smartphones. You won't find any iPhones or Galaxy phones with IR blasters, but that doesn't mean you have to settle for a poorly reviewed smartphone if you're interested in the tech. You will, however, probably need to settle for either OnePlus or Xiaomi, as they're the two key players still churning out powerful smartphones equipped with IR blasters.

Read more
Why you should buy the iPhone 15 Pro instead of the iPhone 15 Pro Max
Natural Titanium iPhone 15 Pro with Chopper and BD-1 droids around it.

Apple releases multiple iPhones every year, offering folks choice in terms of size and features. In 2024, the iPhone 15 lineup includes four distinct models.

The regular iPhone 15 and iPhone 15 Plus are great for those who don’t need a telephoto lens and don’t care about the Action button or the 1TB of storage. But anyone who wants a more “pro” experience has the iPhone 15 Pro and iPhone 15 Pro Max.

Read more