Last month Nokia and Microsoft entered into a “broad strategic partnership” that made the Windows Phone OS its “primary smartphone strategy”. All seemed like a logical partnership as Nokia needed the help and new CEO Stephen Elop used to be working at Microsoft… and also Microsoft needed a global boost to their new mobile platform.
A report today from Bloomberg who states “two people with knowledge of the terms” revealed that Microsoft will pay Nokia $1 billion over the next 5 years to have them “promote and develop Windows-based handsets”. In addition, Nokia will pay Microsoft “a fee for each copy of Windows used in its phones”. It’s rumoured that one of the reasons Microsoft was interested to get Windows Phone on Nokia devices was due to the growth of Google’s Android and the adoption of the Apple iPhone.