New rumor claims that Microsoft is trying to motivate Samsung's Windows Phone arm with $1bn

New rumor claims that Microsoft is trying to motivate Samsung's Windows Phone arm with $1bn
A new rumor, started by blogger Eldar Murtazin, is putting to light a rather interesting claim: Microsoft might be trying to lure Samsung into getting serious with its Windows Phone products, and it has allegedly put as much as $1 billion on the table. Sure, that's strictly a rumor and nothing official has ever gotten to us, yet it does make an awful lot of sense.

Think about it. Once the Microsoft-Nokia deal is finalized, the Redmond-based software (and soon hardware) giant will be pretty much the sole owner of the Windows Phone space, as partners like HTC, Samsung and Huawei are barely moving units in comparison. So unless the folks over in Washington state plan to turn into another Apple, incentivizing third-parties sounds like a no-brainer, and Microsoft definitely has pretty deep pockets to make this happen. Moreover, Nokia did (and still does) receive a very similar package. Of course, Samsung is hardly wanting for cash, though a billion dollars is no pocket money even to them, not to mention that Sammy can count on the ecosystem to see a bigger push than ever. 

In the end, however, this is just speculation, and one coming from a source that has had a mixed record so far.

source: Twitter via SamMobile



1. ajac09

Posts: 1482; Member since: Sep 30, 2009

or they could just pay off apple for them.

2. E.S.1

Posts: 308; Member since: Sep 14, 2013

It's all business.

7. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Stupid business though, since no one in their right mind is going to produce anything requiring real investment to compete against MS themselves. They are trying to copy both Google and Apple in classic MS fashion and will likely fail at both. Do they not get how polar opposite those two strategies are? You can't make your own hardware and expect others to make you some too because you have all the home ground advantage.

12. noler

Posts: 326; Member since: Aug 19, 2013

Google make their on hardware, Google and Android will fail?

27. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Well firstly everyone knows Google didn't buy Moto for hardware making, that is just them using what they got extra. Second they have gone out of their way to give Moto no advantage over other OEMs unlike MS who have done the opposite giving full priority to Nokia (now theirs). So no Google and Android won't fail because even now they aren't in the conventional hardware race with things like Glass and Project Ara. MS though is competing directly with their "Partners" which are few and far between now.

31. papss unregistered

Dude did you forget the nexus like? Google IS. Competing directly.

34. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

Did you forget that Google does not build the Nexus? It is contracted out to other companys.

35. SuperMaoriBro

Posts: 533; Member since: Jun 23, 2012

Google nexus branded devices are cheaper to own outright. This takes sales away from other manufacturers

36. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

If the "Other" manufactures had a problem with the pricing of the nexus then why would they continue to make them? How does your theory work?

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Bribes can work wonders ... and M$ gets back to its old trick. How can one forget the way M$ used to market against Sun Solaris servers .. it used to be over Luncheon parties :)

6. sri_tech

Posts: 188; Member since: May 21, 2013

If you talk about bribing then there is no worse company than Samsung in that. You can read the company's history on TheVerge editorial. Also, didnt samsung paid twitter to make its tablet app exclusive to galaxy tablets?

4. sri_tech

Posts: 188; Member since: May 21, 2013

Eldar Murtazin is pathetic troll. He hates everything about Nokia and Microsoft. You can see from the above twitter conversation (his replies to the above tweet). He also saying Samsung did not lose any money on Tizen. How come Samsung did not lose money on Tizen when its delayed many times? He also said WP8 devices wont receive any updates which is false. Microsoft released 3 updates after that and confirmed that they will be updated in future also.

9. addicted2088

Posts: 57; Member since: Sep 25, 2012

Heck, he even said Tizen was cancelled, so he just bakes up rumors everywhere. Murtazin is not one to be believed, except when it's early access to a device that he often gets.

21. FoneAddict

Posts: 263; Member since: Jul 05, 2011

Eldar has been right on many occasions just because he isn't a big fan of Windows Mobile doesn't make him a Troll. The fact is MS are in deep crap as they are struggling against the big boys Apple and Google and no one can admire how they treated Nokia by employing Elop Trojan.

32. papss unregistered

You mean wp? Win mobile has been gone for a while.

5. sipha

Posts: 439; Member since: May 12, 2012

how does Microsoft make money from Windows Phone exactly?? 0_o

10. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

Not much. It seems that one of microsofts biggest payouts is from their patents that android uses to the tune 3 billion + if I remember correctly.

19. ballaonnabudget

Posts: 38; Member since: May 15, 2013

Android royalties

24. protozeloz

Posts: 5396; Member since: Sep 16, 2010

they have fees for windows and windows phone... also tons of android money to burn

28. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

Yes they have fees for windows phone, but as a previous article on phonearena has stated Microsoft may start waiving fees on WP and RT software in order to draw in more OEMs in; there by negating any money they would have collected on those fees. Heres the story: Right now Windows (for computers) and patent money brought in from Android/OEMs are the cash cows for Microsoft. Their mobile computing platforms (Windows phone & Windows RT) and other divisions like XBOX are spilling red ink (leaking money away) from Microsoft's bottom line. Here is the story:

30. xfire99

Posts: 1205; Member since: Mar 14, 2012

They dont and they earn $2B a year on Android royalties and lose $2.5 billion a year on Skype, Windows Phone, and Xbox. Thats why they are trying to use "bribes", like they did with Nokia and want OEMs back. For Nokia, all know how it went and was bad idea to get involved with Microsoft. They get $250m quarterly, but need to pay Microsoft €500m for license fee for Nokia WP Phones and was real bad deal. Best is OEMs stay away from WP phones and dont repeat Nokias mistake.

8. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

I can see M$ doing this as they are all about distroying Google. How better to do it than to trying to pay Samsung (which is androids biggest OEM) for producing WP products? You don't see them going after one of the smaller OEMs.

22. SellPhones82

Posts: 569; Member since: Dec 11, 2008

Yeah, but how well have any Samsung Windows phones sold in the past? Also Samsung seems to do well with Android due to advertising and the fact that they are able to customize the UI and add features that stock Android does not offer. I may be wrong, but is Microsoft pretty stick on what OEMs can and can't change/add in W8? How is Samsung going to differentiate themselves from Nokia and HTC W8 phones? $1BN is a huge cunk of change and would be shocked if Samsung didn't take the offer but still don't see how that will "destroy" Google in any way. There are also rumors that MS is going to lower the licencing fees fees on W8 and RT, which should also help given Android is FREE to the OEMs. I hope we see some dual booting phones from Samsung because of this.

26. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

BEFORE I GET STARTED; I thank that we should note that this whole story that we are commenting on is based on a rumor by this one person on twitter and has not been confirmed nor denied by any other source. There for any of this may or may not be true. With that said I submit the following: Answer: Samsung WPs have not been making neither, Samsung or Microsoft, very much money or have been selling very well considering that the only one that I can recall Samsung recently producing is the ATIV series. But consider if we break down all of the numbers of all OEMs involved in Android and assign them respective market shares based on the break up per OEM handsets sold on the market then you would find that for Samsung's Android market share it comes fairly close to being 70% of Android handsets sold. That by any standard is a large chunk of an OS (Not as much as Nokia's percent of the WP market which is 90% or better). When we take in to account Microsoft's perceived "war" that they have been waging on Google with their scroogled campaign against Google's products and services the picture starts to become clearer. This is not about choice for the consumer but another attack on Google by Microsoft going after Google's current top android manufacturer which is Samsung. Sure Samsung is not for the time going to give up Android (no one is suggesting that) but if MS can get in on Samsung and have them produce more WP (Assuming that they, Samsung & Microsoft, could sell the products for a profit) then Microsoft would be in effect be attacking Google where they wanted by taking market share from Android and indirectly attacking Google's bottom line; its money flow. The reason that they are offering this "bribe" or deal (if that is what you want to call it) to Samsung and not LG or HTC is because of Samsung's dominance in the android market, nothing more nothing less. Sure they are reducing fees for WP and RT software for all OEMs but who else are they offering this sort of deal to if this story turns out to be true?

11. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

It would be so easy to port WP over to a Samsung S4 or Note 3. Just look at the Nokia phablet hardware. It uses the same guts as any other Android phone. Or better yet just have an option to dual boot. Let customers decide which OS to choose from on power up.

13. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

Not to start a fight but with the system requirements of touch wiz on top of android leaving users of some note 3s and gs4s with only 8gb of use able storage I don't see the dual boot as an option. I don't know the requirements for WP one would need to run it but there would be a whole lot of unhappy customers if they turn on their phones and only found 4gb or less of usable storage on board.

14. nobelset

Posts: 270; Member since: Oct 17, 2012

I think 32GB is going to be the standard next year. Well it should be... At least

16. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

I am hoping that we have gotten to the point of 32\64 instead of 16\32 myself, but like you said we will have to wait and see.

15. Tuxedo

Posts: 356; Member since: Mar 19, 2013

Screw Samsung, if you have to bribe them, they are not serious enough. All you have to do is build some d@mn apps MS.

17. aco96

Posts: 244; Member since: Oct 12, 2012

I love my Samsung ATIV S, best phone ever! :D

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