Before Microsoft bought out Nokia's phone division, the software giant was subsidizing the phone maker to the tune of $1 billion a year. That was a big incentive for Nokia to go with Windows Phone over other alternatives.
Microsoft is going to pay to each company for creating one windows phone 8 model. No matter how they call this money, its not a real business for Microsoft.
Anyway, apparently Samsung has taken the deal and will be receiving $1.2 billion to make Windows Phone 8 handsets.
There seems to have been some negotiations since the
number was $1 billion in mid-
December.
Windows phone 8 in 2014 - Samsung $1.2 billion, Sony $0.5 billion, Huawei $0.6 billion, others - $0.3 billion.
Samsung isn't alone in this – we've heard that Microsoft has been courting Sony to make a WP handset too and it the wooing was reportedly
in the form of $500 million. Even Huawei is getting a cut, more than Sony actually - $600 million. Other
companies, which haven't been named, will reportedly be receiving lower sums, $300 million.
Rumours has it that HTC might also be involved in the deal.
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