Microsoft To Spend Billions in Mobile Subsidies

Windows manufacturer, Microsoft, is about to complete its acquirement of Nokia.  Obviously other Windows Phone manufactures do not like this at all. When the deal has been completed, the innovative  software manufacturer will finish up owning approximately 90% of the Windows Phone market, thereby leaving little or no room at all for any healthy competition.

Monopoly is not something any company wants. But before you question this statement, think about this for a moment; in order to have a prosperous environment that can compete with the likes of Android, Microsoft needs numerous vendors to make Windows Phone devices in order to keep the prices low. If prices remain too high, consumers will switch to other devices, such as Apple. Microsoft needs to get current customers to stay on board by any means necessary.

Rumours have said that Microsoft will spend some $2.6 billion to subsidize other handset manufacturers. The largest portion of that amount goes to Samsung, which should receive the largest portion; Huawei and then Sony closely follow them.  The remaining amounts would no doubt be sliced up between the other manufacturers. HTC is apparently not on the list, although it may go home with some money?  However, Microsoft has said that these figures are completely erroneous.

As a reminder, at the time Nokia announced support for Windows Phone, it apparently received approximately $1 billion from Microsoft. And allegedly, now other handset makers would like a similar deal.

What do you think? Are Microsoft’s statements about co-marketing with partners just an excuse for bribery? Or shall we say monopolisation tactics? Or is there a genuine reason behind the original figures put forward by Mobile-Review’s Eldar Murtazin?  As always your sensible comments are always welcome.