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Nokia to get "billions, not millions" from Microsoft

Posted: , by Victor H.

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The agreement between Nokia and Microsoft has polarized opinions to a point where it was called the Elopocalypse. But many have pointed out, that the Finns might not have gotten as much of a deal out of it as Microsoft. CEO Stephen Elop took stage at the company's “An Evening With Nokia” to explain just why the deal is indeed fair.

You guessed it right - it's the money: "When you look at all of the value that we're contributing, the value transferred to Nokia is measured in the billions, not the millions," Elop noted. He didn't give exact figures over how Microsoft will transfer the value, but he purposefully dismissed the notion that he is the Microsoft "Trojan horse" at Nokia, which has been making the rounds these days.

Well, this answers some questions, doesn't it? Nokia's CEO also broke down the other benefits for Nokia among which the opportunity for the Finns to use Bing and Xbox. Elop also mentioned that Windows Phone will become dependent on Nokia's location-based services. Espoo will also benefit from advertising revenue through Microsoft.

In return, the list of benefits for Microsoft starts with the royalties the company will receive and ends with the non-exclusive nature of the deal, which would put Nokia in a very competitive environment. And it seems that it will be the number of "billions" Microsoft contributes that will be of crucial importance. What's your opinion on the agreement? Let us know in the comments and don't forget to cast your vote in our poll on the topic!

source: Nokia

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posted on 13 Feb 2011, 14:40 4

1. Shafeer (Posts: 79; Member since: 30 Dec 2010)


Windows Phone 7 is certainly a great software..
I used it in a store and was surprised by how smooth everything was. The next thing I did was bought it..

Since then I was surprised about how little bugs it had. So it's good for Nokia.

Microsoft are also lucky to have one of the top brands in the market on their software, most asians take Nokia and they are bound to be impressed with WP7

posted on 13 Feb 2011, 15:28 1

2. OsirisRa (Posts: 46; Member since: 17 Dec 2010)


Honestly, its the way Nokia went about doing there business. Elop is a real shady person and how that affects Nokia is what people should be talking about. Hopefully Intel pulls through with Meego and Ill purchase the device. Windows is a simple OS, but thats all it is. It cant even compare to Maemo 5, and thats a dead OS.

posted on 13 Feb 2011, 15:29

3. BaiGanyo (Posts: 308; Member since: 07 Feb 2011)


The fact that it is billions, doesn't mean a whole lot when you are talking about companies on the scale of Microsoft and Nokia tho. Not being a downer, just saying Nokia's revenue was around 56B USD last year. If the deal wasn't in the billions, it wouldn't even be real news.

posted on 13 Feb 2011, 16:13

4. ps1001 (Posts: 65; Member since: 14 Dec 2010)


if wp7 gets all the needed improvements(cause its pretty tard at the moment), this will be the biggest smartphone-industry move since steve jobs said- "ok, i'm gonna build a fone- and its gonna be mine mine mine mine mine mine...."

posted on 13 Feb 2011, 18:43

7. SemperFiV12 (Posts: 600; Member since: 09 Nov 2010)


It is definitely not tard right now, and it will only continue to get better. Microsoft is heavily committed, and the end users with WP7 devices are going to benefit.

posted on 13 Feb 2011, 16:14

5. TC (unregistered)


"Elop also mentioned that Windows Phone will become dependant on Nokia's location-based services", will Samsung and HTC and... also be able to use Nokia Maps for free on their Windows Phone 7 phones, if not they have no reason to continue using only a limited version of WP7?

posted on 13 Feb 2011, 16:57

6. vvelez5 (Posts: 623; Member since: 29 Jan 2011)


I still think Elop is the "Microsoft trojan horse"

posted on 13 Feb 2011, 19:42

8. KIANO (Posts: 67; Member since: 13 Feb 2011)


Is it far fetched if they form a new platform based from combined Symbian and Windows — SYMBOWS ?

For now, let us wait and see how the furture Nokia Windows devices perform.

posted on 13 Feb 2011, 20:17

9. intos (unregistered)


wtf ! and what about with another devices that comes with wp7 like htc hd7 ?? how they will continue ? they will support also this devices ? or we will send them to nokia to baptize them :P

posted on 13 Feb 2011, 20:57

10. ThreeFourSeven (unregistered)


I guess Microsoft doesn't care if they lose their other partners. After a while, only Nokia might be selling WP7.

posted on 13 Feb 2011, 22:57

11. Droid_X_Doug (Posts: 5289; Member since: 22 Dec 2010)


Another article stated that Nokia is going to be 'transitioning' to WP7 for the rest of 2011 and most of 2012. The current obsolescence cycle is about 1 year (Droid X was released July, 2010-ish and it is arguably obsolete with the pending release of the Bionic). So, by the time that Nokia gets 'transitioned' to WP7, they will have lost one product market cycle.

Sounds like Nokia is praying that WP7 gets some serious traction in the face of the Android and iOS onslaught.

posted on 14 Feb 2011, 07:11

12. Jack1059 (unregistered)


The danger is that nokia become another sony ericcson, and slide into obscurity, simply becoming a handset manufacturer for MS.

posted on 14 Feb 2011, 15:14

13. downphoenix (Posts: 2235; Member since: 19 Jun 2010)


I love how the nokia fanboys say this is the end for Nokia, when the truth is, Nokia is doing this so they WONT end. Sometimes you have to do something drastic to save your company and make it relevent again. Apple did it back in 1997 by bringing Jobs back on board and making a deal with Microsoft, and look how that turned out.

posted on 15 Feb 2011, 00:13

14. lucasjohny (Posts: 7; Member since: 10 Feb 2011)


windows 7 very smooth??? oic try to install more then 200 apps on it and then tell me. LOL.... wm7 is also a burning platform nice move nokia or i say no kia lol

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