More Details on Nokia & Microsoft’s Financial Relationship

There’s been a lot of confusion regarding Nokia and Microsoft’s financial relationship, for the past few quarters Microsoft have been shelling out a hefty sum of money as a “thank you” to Nokia for joining the platform; while Nokia has been paying most of it back through licensing fees; of which they MUST purchase a flat rate minimum or per quarter. In other words even if they only sold a single phone they would still be paying Microsoft for the X amount licenses that they agreed on two years ago.

In a press release today Nokia clarified a bit on what sort of finances are to be expected in the future, stating:

– The remaining minimum software royalty commitment payments from Nokia to Microsoft are expected to exceed the remaining platform support payments from Microsoft to Nokia by a total of approximately EUR 0.5 billion over the remaining life of the agreement.
– However, in 2013 the amount of the platform support payments from Microsoft to Nokia is still expected to slightly exceed the total amount of the minimum software royalty commitment payments from Nokia to Microsoft.

So in short until the lifetime of this agreement ends (I’m guessing 5 years?) Nokia expect to have to pay Microsoft about 500 million euros in net licensing fees; meanwhile for this year (2013) Nokia will still come out on top in terms of financial balance with Microsoft, as the support payments are expected to “slightly exceed” the minimum software royalties.

Hopefully that cleared things up a bit; but on to more important matters doesn’t it look like  Marko and the lady next to him are cracking jokes at Elop’s expense?
-I see a lot of potential in the picture above; so I’m just going to go ahead and leave the full size original HERE

Via /SOURCE

Category: Lumia, Microsoft, Nokia, Windows Phone