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#1572
Originally Posted by nocain View Post
Let's play a game here. In 2010 nokia spent $1 billion on symbian development and $.3billion on meego and QT for a total of $1.3 billion and they sold 100 million symbian devices. Now let's say these were instead Windows Phone devices and their MS deal is in place.

I am only guessing that licensing WP from MS is $20 per handset. Now let's say with this deal nokia is getting a 25% discount so they pay $15 per device. Now how much would they be paying MS in licensing? $1.5 billion. So $200 million more then staying in house. Ahh but the ad revenue they might be getting... Ok now let's do the above for 2011 and assume nokia is going to hit their target of 150 million symbian devices sold( laughable I know since they killed it in consumer eyes ) let's also assume they spend the same for symbian QT and meego development $1.3 billion. In this scenario they would be paying $2.25 billion to MS for licensing, almost 1 billion more then they would have spent keeping development in house. Do you really think MS is going to be cutting nokia a $250 million check every quarter in ad revenue sharing??? I doubt it.

So how does this make sense when you sell more smart phones then any other manufacturer, and symbian just in 2010 finally became the #2 smartphone OS? Oh and they picked the number #5 OS to go with?
At MWC, Elop was asked this very question.

Whether the billions of dollar 'transfer of value' from MS to Nokia is a 'net benefit' or is that a lump sum that will still be reduced by other factors. Elop said that 'the net benefit will be in the billions'.

He also mentioned that the move to WP was made because it will reduce Nokia's opex.
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