Back in February, a huge number of people wondered why Nokia went with Windows Phone 7 and not Android. Here’s another reason to add to the rather obvious business cases that were pointed out after Feb 11, and it’s all to do with Samsung.
Today, Samsung announced they would be paying Microsoft a per-device royalty on all their Android devices. And the per-device Android fee handed to Microsoft is more than the per-device cost of licencing Windows Phone 7. There’s a potential fiduciary argument that Windows Phone is now cheaper than Android.
Starter for ten, how much are Nokia paying per Windows Phone they sell? Well it’s “significantly lower than for other Windows Phone licensees” (AAS) and Nokia are receiving ”substantial payments” from Microsoft in regards to their IP. There’s no hard and fast numbers out there but I bet the balance sheets, at least for the next two or three years, are going to be in Nokia’s favour on that per-device cost.
Nokia and Stephen Elop were always playing the long game, and it’s starting to bear fruit.