How much cash is involved in the Microsoft-Nokia partnership? How much are we talking about here? According to Bloomberg's sources, the big M will pay the Finns over a $1 billion or about P43.4 billion. Ka-ching!
The deal is not final yet, but as of this writing, it is said that Microsoft will be paying Nokia "some money up-front, and giving Nokia a share of advertising revenues." Nokia will also lso be paying for its use of Nokia's Navteq mapping services. Microsoft, on the other hand, will get paid a licensing fee for each Nokia WP7 phone shipped.
If this is true, then who's getting the better end of the deal?
Short term? Nokia may be the clear winner. Take note that the agreement doesn't supposedly call for ditching Symbian and MeeGo, 2 platforms the Finns could further develop without having to dig deep into their pockets.
Then again, Microsoft may be thinking ahead. A license costs $15 (or about P652). 70 million Nokia Windows Phone 7 units should be sold so the big M could recoup its "loss." That's a lot. However, we're talking here of a deal that's not less than 5 years long, so Microsoft has plenty of time to get back its $1 billion.
As for us, we're lucky to make a fraction of that money in this lifetime. But we digress. We actually just want to know what you think of this.
Via Engadget and Ars Technica
Source Bloomberg
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