Microsoft to pay Nokia more than 1 billion dollars for research and development promotion costs

Beijing time March 8 morning news, according to people familiar with the matter, Microsoft will pay Nokia more than 1 billion U.S. dollars for the development and promotion of mobile phones on the Windows Phone platform. It is said that Nokia needs to pay Microsoft for every Windows Phone handset, a cost that will be offset by a reduction in Nokia's software development budget.　　The two companies ' agreements have an effective period of up to 5 years. February 11, Microsoft and Nokia announced a strategic cooperation agreement, Nokia will fully switch to the Windows Phone platform. However, the Windows phone platform, which has been in place for several months and has little market share, has cast doubt on the cooperation of two companies.　　Since then, Nokia's shares have fallen 26% per cent. Nokia needs to cut costs to deter further declines in operating margins. That figure has slipped from 19% before 10 to 4.9% last year. Sami Sarkamies, analyst Sami Sacames of the Nordic Union Bank, said Nokia could cut its equipment and services development budget by about One-third this year and next.　　Last year, the spending was about € 3 billion. Microsoft declined to comment.　　Nokia spokeswoman Lauri Armstrong Laurie Armstrong said the agreement had not yet been finalized. Microsoft is said to be profiting from Nokia's software royalties.　　Some of the money will be paid before Nokia starts selling Windows Phone models, which means Microsoft will have to bear some upfront costs. Microsoft shareholders want the company to rescue its mobile-phone software business while controlling costs.　　However, Microsoft has not counted the business's financial data alone, but has mixed it with the lucrative Xbox video gaming business, making it difficult to judge the performance of its mobile software business. Steve Ballmer, Microsoft's CEO, has been Ballmer pressure from investors and boards to boost sales of mobile software.　　Microsoft's share price has slipped 8% this year. Microsoft's payment of more than $1 billion trillion to Nokia is part of a move to prevent the world's largest handset maker from switching to the Android platform, according to people familiar with the matter. Another reason for Nokia's choice of Microsoft is that the Windows phone system makes it easier for Nokia to look different. (Yan Fei)