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Forums - Gaming Discussion - Nokia results. 4th Qtr and Full year. Return to profit.

How much was the "platform support payments" from MS to Nokia? that was around the same region as their profits right? Hope they raise it up in the future.. competition is always good



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

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kowenicki said:
NiKKoM said:
How much was the "platform support payments" from MS to Nokia? that was around the same region as their profits right? Hope they raise it up in the future.. competition is always good


That was in december 2011.  It was in the figures a year ago.

Nokia stated it was a quartly payment for the coming years

 

“Our agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. In the second quarter 2012, we received a quarterly platform support payment of USD 250 million (approximately EUR 196 million). Under the terms of the agreement governing the platform support payments, the amount of each quarterly platform support payment is USD 250 million. We have a competitive software royalty structure, which includes annual minimum software royalty commitments. Minimum software royalty commitments are paid quarterly. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US dollars. The total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitments. In accordance with the contract terms, the platform support payments and annual minimum software royalty commitment payments continue for a corresponding period of time”

http://www.slashgear.com/nokia-microsoft-pays-us-more-than-we-pay-them-but-q3-will-still-be-dire-19239306/

i wonder how much the minimum software royalty commitments are from Nokia to MS are they in the numbers?



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

NiKKoM said:
kowenicki said:
NiKKoM said:
How much was the "platform support payments" from MS to Nokia? that was around the same region as their profits right? Hope they raise it up in the future.. competition is always good


That was in december 2011.  It was in the figures a year ago.

Nokia stated it was a quartly payment for the coming years

 

“Our agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. In the second quarter 2012, we received a quarterly platform support payment of USD 250 million (approximately EUR 196 million). Under the terms of the agreement governing the platform support payments, the amount of each quarterly platform support payment is USD 250 million. We have a competitive software royalty structure, which includes annual minimum software royalty commitments. Minimum software royalty commitments are paid quarterly. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US dollars. The total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitments. In accordance with the contract terms, the platform support payments and annual minimum software royalty commitment payments continue for a corresponding period of time”

http://www.slashgear.com/nokia-microsoft-pays-us-more-than-we-pay-them-but-q3-will-still-be-dire-19239306/

i wonder how much the minimum software royalty commitments are from Nokia to MS are they in the numbers?

This should answer your question...

http://www.engadget.com/2013/01/24/nokia-microsoft-payments/

Basically Microsoft pays nokia until volume of phones sold gets high enough. And Nokia even may have to pay Microsoft if they sell like >10 million phones per quarter(estimation on my part)...



kowenicki said:
Share price will drop on the news of dividend cut I expect. But long term this seems like reasonable news.


I've also read that it dropped over concerns that Lumia's success is largely confined to Europe.

But it's doing quite well in Europe, hitting double-digit marketshare in some regions.

And the real story here is that the bleeding has stopped. There's a pretty short list of companies that aren't actually dying in mobile at this point, and if Nokia can keep this up, they can stop worrying about what they need to do to survive and refocus on what they need to do to get ahead.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

kowenicki said:
During the fourth quarter 2012 our Smart Devices volumes were affected by supply constraints as we ramped up our production capacity, particularly related to the Lumia 920, which have continued into the first quarter 2013.


Lmao. Most of Lumias are OEMed to Nokia by Compal and others.

 

Oh, and btw, I give you one funny quest - find Nokia: http://accounts.icharts.net/icharts/embed/M3/Swy1C