Neowin

In case you've just landed from another planet and didn't know, Microsoft and Nokia have a financial deal in place. According to this deal, Nokia uses Windows Phone on their smartphones and  receives money from Microsoft every quarter in the form of "platform support payments." At the same time, Nokia pays Microsoft some licensing fees for its mobile OS.

This is the deal that was set up between Stephen Elop, Nokia's CEO, and Microsoft back in 2011. But according to a financial report filed by Nokia, in the end, the Finnish company will end up paying an extra $650 million. That takes into consideration all the money the company receives from Microsoft which amounts to approximately $250 million every quarter. The official statement reads:

As a result, the remaining minimum software royalty commitment payments are expected to exceed the remaining platform support payments by a total of approximately EUR 0.5 billion over the remaining life of the agreement.  

The statement also mentions that for 2012 the amount of cash received from Microsoft was larger than the amount Nokia had to pay to license the OS and this added to the company's bottom line. The same is expected to happen in 2013, though the resulting profit will be less than it was last year.

Nokia also stated that it expects its smartphone and service business to outperform the general market and they expect a margin of at least 10 percent. The company is also aiming between 5-10 percent profit for its Nokia Siemens business.

Source: TechCrunch

not sure if got it right... but are you saying MS made a deal with Nokia "forcing" (by giving them money) them to use only the WP OS and in the end nokia will have to pay (all back and plus 650 million) to be "forced" to use only WP OS?

if that is the case... nokia is more stupid than i thought.

Nokia should have went Android.

Basically, Nokia is getting fined bc they aren't and are expected by the author to not sell enough.,,well
what did y'all expect?

About the only way I see Microsoft making any gains in market share for the phone and tablet market.  Most consumers are happy with Android or iOS.  I see the Microsoft Surface Pro tablet appealing to business clients over average consumers mainly due to the price.  I view Microsoft kind of like I view Dell.  Most people really don't give a shit about Dell anymore (was huge late 90s and early 2000s for consumers).  Dell is still around but they are more focused on business clients than trying to sell computers, tablets to the average consumer.  Hell, I haven't seen a Dell commercial in awhile (I don't watch that much regular TV) but they used to be on all the time back in the day.  So Microsoft and Nokia main chance on getting any decent market share would be for business because I don't see too many average consumers going crazy for Windows phones or tablets.

Nokia going with WP was a good movie. Everyone keeps saying that they should have gone forward with Android but if they did, they would be another Android OEM getting choked by Samsung and Chinese manufacturers.

On the WP side, if you want a windows phone, there really is no other option right now than Nokia. They own the market. From low range to flagship, their product is best. WP devices should sell around 20-30 million this year at current rate and 80% of them will be Nokia's.  You do the math.

Poor Microsoft is getting outpaced in the stock market and once google grows to twice microsofts stock value then Microsoft will have a very hard time ever being dominant again

A dying old dinosaur.

so M$ will end up owning nokia confirmed?

That's.... interesting, the market for WP seems to be really shaky, I blame the ugly UI.