Microsoft Pays Nokia 250 Million Dollars this Qtr for “Platform Support”
Back when the Nokia/Microsoft partnership was announced a lot of us were wondering why Nokia did not go with Android instead of Windows Phone. At that point we were told a lot of about eco-system and how Google did not “step up to plate” like Microsoft.
At that point I didn’t really fully grasp what it meant when Nokia’s president Steven Elop stated Nokia would be getting support from Microsoft financially “In the B’s not the M’s”. Well I am here to report today I do now.
Nokia has received it’s quarterly “platform support payment” of 250 million. Now if these “platform support payments” just stay even over the course of 2012 this means Nokia will have gotten $1,000,000,000.00 (1 Billion) dollars from Microsoft this year alone!
Quoting from a Nokia press release:
“Our broad strategic agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. In the fourth quarter 2011, we received the first quarterly platform support payment of USD 250 million (EUR 180 million). We have a competitive software royalty structure, which includes minimum software royalty commitments. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US Dollars.”
After seeing the awards Nokia is picking up from their Lumia series of phones, the fact that Windows Phone is picking up a head of steam now, plus these “Platform Support Payments” perhaps the “Windows Phone move” was not that bad of a decision after all.
Via: Daily Mobile
Category: Latest News
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