Handset maker: Windows Phone OS costs $23-plus per copy?
Summary: Is Microsoft charging some of its phone OEMs between $23 and $31 per copy to license its Windows Phone OS?
There's a report on TrustedReviews.com that quotes an official with Windows Phone OEM ZTE as saying the company is paying Microsoft somewhere betweeen $23 and $31 per copy to license the Windows Phone operating system.
(I wonder whether this total includes the patent-licensing royalty fees that Microsoft is levying from a growing number of Android smartphone OEMs, which some have pegged at somewhere between $5 to $15 per phone. I've asked Microsoft officials just in case they might respond. but no word back yet.) Update: Microsoft declined to comment on any part of the ZTE report.
As Neowin noted, Microsoft could and probably does have a tiered pricing system for the Windows Phone OS, just as it traditionally had/has for Windows. The top tier most likely pays a lower licensing fee, given they move more phones. Is ZTE a "top tier" OEM like Samsung or HTC? Doubtful, even though the Chinese phone maker, the No. 4 player worldwide, allegedly has some big expansion plans.
The new $23-$31 figure is interesting in that -- if it's accurate -- it provides one of the first (if not the first) glimpse as to what OEMs are paying for the Windows Phone OS. It's widely believed Microsoft still currently gets more per copy from OEMs for licensing Windows than it does by licensing the Windows Phone OS. Estimates of the price-per-copy for the two OSes have been all over the map, ranging from $3 per copy per Windows Phone (for top tier licensees), to $30 to $100-plus per copy of Windows 8.
In other Windows Phone news this week, Microsoft's tightest OEM partner, Nokia, has sold more than 450 of its mobile communications patents and applications to Sisvel International. (Nokia made a similar move last year when it offloaded about 2,000 of its patents to Mosaid Technologies.)
The purpose behind these moves by Nokia seems to be designed to offload patent licensing and enforcement, according to FOSS Patents blogger Florian Mueller.
"The sale of such patents by large operating companies to patent monetization (and assertion) entities is pretty common by now," said Mueller (who is working on a study of FRAND patents for Microsoft). "If any other operating companies in the industry would have preferred to take a license to those patents directly from Nokia, they could have done so all the time, and most license agreements survive a sale of the licensed patents. If any other industry players refused to take a license in the past, they will now have to negotiate with a patent holder they can't even countersue because Sisvel doesn't have any products one could claim to infringe any patents."
Nokia also is rolling out starting this week its second update for its Lumia 800 phones aimed at addressing battery-life and wifi connectivity concerns.
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Talkback
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
I hate immatators!
"Being on the leading edge is a good way to get cut!" -S.Ballmer
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
You're funny and one would think you're almost being sarcastic. I couldn't imagine anyone being naive enough to worship MS in such a manner. It sounds like you're trying to start fires and fan the flames.
Still, it's entertaining. Keep up the good work... :-)
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
Chop chop
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
Hahahahahahaha
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
Up and coming from 2.7 to 1.5 percent market share?
My company has apps out for iOS, Android and (unfortunately) RIM. We've had a torrent of problems and support calls on RIM. One or two on iOS and none on Android.
We wouldn't even be doing RIM except for the fact that the IT department here keeps issuing them internally just out of inertia.
This week Steve Wozniak wrote a column praising Android and saying how much more useful it's become. I've got all the phones for testing purposes, and I'm starting to spend a lot more time studying Android. It is the phone OS of the future. (Unfortunately, as I love my iPhone 4S)
At my company, there has not even been discussion about Windows Phone OS, with the sole exception of my bringing it up at a meeting just to get a laugh. I can report that it was successful, so WP7 is proven good for something.
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
That is your company's loss. You can mention to your superiors in the next meeting about cutting back on android development since its full of patent lawsuits and so that particular mobile OS may not be around for much longer.
My company is flexible like reed, nimble like grasshopper
When WP7 blows out of < 5% territory, we shall revisit it.
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
You have to understand that The Woz is a techie at heart. He speaks for the techies of the world which are the minority. He can't help himself. But, if you don't care about having to root your system to get what you want then keep loving your iPhone 4S. I do! Not yours, mine. :-)
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
The cost makes sense
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
RE: Handset maker: Windows Phone OS costs $23-plus per copy?
In other words...
Hardware has a much higher margin