Phones Limited

Rumoured $2.6 billion payout to OEMs denied by Microsoft

News   •   Jan 16, 2014 17:57 GMT

Recently, a tweet by infamous Nokia insider Eldar Murtazin claimed that Microsoft will be paying OEMs $2.6 billion to make Windows Phone devices. Over $1 billion of this budget was allotted to Samsung.

Murtazin said on Twitter, “Windows phone 8 in 2014 - Samsung 1.2 bln USD, Sony 0.5 bln, Huawei 0.6 bln, others - 0.3 bln. Thats "support" from MS to develop one (1!)hs.”

Frank X. Shaw, communications lead at Microsoft, denied the rumour, saying on Twitter, “reality check. Do we do co-marketing with partners? You bet! But these numbers are complete fiction!”

Responding to an inquiry by @UVStaska, Eldar Murtazin said again on Twitter, ““@UVStaska they could call this money ad they wish :) but thats not marketing - they paying for all r&d costs, etc”

So what’s the truth here? According to UnwiredView, “It is pretty clear that Microsoft will pay quite a lot of money to its OEM partners to promote Windows Phone this year. As they should. There is little else they can do to wean smartphone OEMs from their Android addiction. The money will be sent to WP vendors in the form of co-marketing funds, not as Nokia like “platform support” payments.

“But we are playing with semantics here. In the end – cash is cash, no matter what you call it for  accounting or PR purposes. The only questions that remain are – “How much?“, and “Will those payments lead to WP success?”

What do you make of all of this? Is Eldar Murtazin telling the truth, or is it Frank X. Shaw? Drop a comment below.