Microsoft is not paying Nokia billions to support Windows Phone 7

During the World Mobile Congress in Barcelona, the biggest cellular phone event in the world, Nokia and Microsoft announced a new partnership that would bring the Windows Phone 7 operating system to Nokia devices.

After the announcement, there was both positive and negative feedback about the deal, including workers threatening to walk off the job site. There was word of another rumor about how much money exchanged hands for Nokia to switch, which was estimated in the billions of dollars.

The rumor started shortly after the press conference and the Q&A session on Sunday night. Nokia said that the deal would generate "billions, not millions" of dollars worth of revenue. This small quote quickly turned into Microsoft handing over billions of dollars to Nokia to get them to switch.

Engadget.com had a sit down with Nokia's CEO Stephen Elop, who confirmed that the rumors were not true. Elop said that the partnership was a "very balanced relationship", which means very little cash or no money at all was involved in this partnership.

The deal between Nokia and Microsoft will phase out Symbian on future premium Nokia handsets, instead, loading new phones with the Windows Phone 7 operating system. Out of the partnership, Microsoft gets an expanded platform base, meaning more users, developers, and applications, while Nokia gets an operating system they couldn't build themselves.

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21 Comments

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Microsoft news is often misquoted and distorted into anti-MS propaganda. That's the nature of Google's and Apple's corporate PR machine. They try to turn good news into something negative. It's not usually exposed for what it is.

I find it amusing that so many Google fanbois would prefer to keep the mobile OS platforms to two dominant players, in fact i would wager that at its current pace Android will eventually dwarf Apple everywhere.

though iOS4 is a powerful competitor here, I think that you need a 3rd powerful and well established world wide platform to balance out competition, I think having a 4th powerful player would be helpful as well. I'm a WP7 fan but I'd love to see Web OS challenge Google as well.

I don't think the issue for Google is so much what they lost but more what Microsoft gained. Windows Phone 7 has a 93% satisfaction rating. That's high. That's really high. What's holding it back? No one knows about it. Momentum is building but it takes a while. With a partner like Nokia, Microsoft becomes a major player. It's a positive feedback loop.

Assuming the March update goes as planned, Windows Phone will have a MAJOR advantage over Android. You can play the update lottery with an Android purchase or you can play it safe with Windows Phone and get a better experience too!

Rich Miles said,
...

I think the platform will prove itself as of the fall update.

I know many android owners out there who have to use third party ROMs for the most recent build. I do not want that headache. Two successful updates would prove it a success

Elop didn't just walk in and take the job, he had to interview with the board of directors and reveal his plans for the company. They hired with the full knowledge of what he was going to do.

They made the right choice, as has Elop.

Nokia's world wide sales and reach dwarf every other phone manufacturer in the world, this is why so many Android supporters are angry about this, included Googles senior management.

This is a major loss for google and victory for Microsoft and WP7.

SteelToast said,
Still not open source!!!
Android +1

Yeap, beacause Open Source automatically makes everything a masterpiece. That's why there's no such thing as a successful proprietary software.

zombieChan said,

Yeap, beacause Open Source automatically makes everything a masterpiece. That's why there's no such thing as a successful proprietary software.

Trying to convince an Android Fanboy that open source isn't the second coming of Christ is like trying to convince Jerry Falwell there is no god.

"open source", "global warming" etc. - just a different kind of religion.

SiLeNtDeAtH said,

Trying to convince an Android Fanboy that open source isn't the second coming of Christ is like trying to convince Jerry Falwell there is no god.

"open source", "global warming" etc. - just a different kind of religion.

I agree, my experince with open source is that there is some good stuff but the majority is pretty buggy and not very well designed. I'm happy to pay a company a small amount of money to create reliable software that people are hired to create because they are the best in the business.

dave164 said,

I agree, my experince with open source is that there is some good stuff but the majority is pretty buggy and not very well designed. I'm happy to pay a company a small amount of money to create reliable software that people are hired to create because they are the best in the business.


so true, there is some good open source stuff out there... but so far nothing beats some of MS's masterpieces...

Only good competitor to a proffesional product of MS, is maybe MySQL vs MSSQL but MySQL is going to be killed off by Oracle anyways :')

Digitalx said,
who needs to pay cash when you plant the seeds inside the company to do it for free ?

I'm sure Elop showed Nokia his resume. It wasn't a surprise to the board that he worked at Microsoft when they approved him as CEO.

As such, Microsoft didn't plant him. Nokia chose their executive. If they saw him coming from Microsoft as a problem they wouldn't have done so!

Especially since their decision to hire their first non-Nokia grown CEO meant they were bringing in a change agent (a CEO focused on taking the company in a new direction)...

Digitalx said,
who needs to pay cash when you plant the seeds inside the company to do it for free ?

Why buy a hat when you can easily make one in your kitchen out of tin foil!

I don't understand why they support a OS that could lead the company down a deep hole. They should embrace the new platform and try to get a spot in the new team instead of bitch.