Samsung Pays Microsoft to Sell Android Phones?
Microsoft did it again! First it was the HTC deal which was rumored to have HTC pay Microsoft five dollars for every Android Phone it sells. Now, Microsoft has struck a similar deal with Samsung except that Samsung is paying them ten dollars a phone instead of five.
First part of the deal is good for Microsoft, but the second part of the deal is good for Nokia. This is the part of the deal where Samsung agreed to continued to work on Windows Phones with Microsoft. (One would have to assume this part of the agreement lessened the per phone user fee.) Windows Phone unit President Andy Lees summed it up this way:
“Microsoft and Samsung see the opportunity for dramatic growth in Windows Phones and we’re investing to make that a reality,”
This means there will be another company making and sticking with Windows Phone for the foreseeable future. The more companies making Windows Phone the bigger the eco-system the better the chance of success.
Not only does this deal mean that top two Android handset maker pay Microsoft for every Android Phone it sells (and by default funds Windows Phone) more importantly it mean three of the four top handset maker will be making Windows Phones for the next couple of years. Having these three manufacturers online with Windows Phone will force carriers to showcase Windows Phone, and will help make it a success.