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Nokia Corporation Message Board

  • sydneylocks sydneylocks Apr 5, 2014 2:44 PM Flag

    Msft says WP will be free going forward for devices under 9"

    seems most analyst seems to have missed this info altogether for its impact on nokia; This was a huge fix cost for Nokia, the major WP maker...just puff disappeared.

    thoughts?

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    • Now an Android manufacturer has the choice of paying $5 to $15 per device royalties on Android to Microsoft (and eventually Nokia and Apple) or paying no royalties to Microsoft and take their chances on paying Nokia and Apple eventually.

      Right now, Samsung is the only profitable Android manufacturer so when Apple takes its natural share of the large screen phone market later this year, mostly from Samsung which dominates the large screen smartphone market segment, Samsung will be forced to give up volume and margins unless they dive into the mix with the Huaweis, Lenovos and Xiaomis of the world in the low to mid-range segments which are growing at least 2x the high-end segment.

      Huawei, Lenovo, ZTE and Xiaomi are all aiming for 60-100M units this year so saving those $5 to $15M royalties is the difference between loss and profitability.

    • It hasn't been a cost up to now. Microsoft have paid Nokia more than the license fee in their subsidies. I think Nokia were excused payment of the license fee for years and thus profited from the bonus. However, they lost money anyway on the windows phone business anyway, most quarters. Going forward, if Nokia had to continue with the phone business it would undoubtedly be a significant consideration. But judging from past performance it would not mean a different playing field from what they have already been playing on. Other things might = like the viability of the Nokia X phones and the new Lumia phones etc. but hopefully we won't have to explore them.

    • "thoughts?" : -You're a focking idiot.

      Nokia will no longer be in that business soon. Also, if the price of windoze phone is now zero, the royalties stream should also fall to zero.

      Sentiment: Strong Sell

      • 1 Reply to the.heretic3
      • you cant have it both ways; you're trying to scare people that the deal will be delayed but if that's the case than this is very significant news going forward. Nokia can still maintain its low WP os cost structure but it is no longer bound by the exclusivity agreement with msft..win win...and if deal closes as expected...win again

    • Well unless the deal falls through I don't see much of an impact,however if the deal gets delayed then maybe it will bring in some extra revenue.

 
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