Microsoft denies paying OEMs to support Windows Phone

Windows Phone
Microsoft giving OEMs an offer they can't refuse?

According to rumour, Microsoft will give up to $2.6 billion (£1.6 billion, AU$2.9 billion) to OEMs to support building Windows Phone devices. The head of communications at the company, however, is calling that number "complete fiction" in answer.

The rumour had been started by Eldar Murtazin, chief editor of Mobile Review. In a Tweet, he claimed that a few OEMs that were coming back to Windows Phone in 2014 would get wads of cash from Microsoft in exchange. Out of those, Samsung was supposedly taking the lion's share with more than $1 billion (£600 million, AU$1.1 billion) of the payment.

Frank Shaw, Microsoft's head of communications, has come out and called the numbers "complete fiction" in a tweet yesterday. He instead admitted that Microsoft does spend money on OEMs, but in co-promotions. He claims that they're covering OEM's R&D costs and helping them to switch to Microsoft's OS in order to launch new devices.

Behind the scenes

Despite this, there is certainly a strong incentive for Microsoft to pander to OEMs at the moment. Nokia is heading into the sunset, and its current dominance of the Windows Phone market will be transferred back to Microsoft.

A precedent was also set when Nokia received sums of money every quarter for their investment in the platform. Nokia is a premium partner but now that has been done it's not unreasonable to assume Microsoft would try to entice other companies.

The money doesn't have to be cash either. It's likely that this will include discounted or free licensing on the operating system, direct development support and other perks that Microsoft might be giving away.

Even though the company is denying it, there's a strong possibility that behind the scenes cash and promises could be being swapped between Microsoft and OEMs for the future of the Windows Phone.

Latest in Phone & Communications
GlocalMe KeyTracker
When I tested this global tracker, it trounced the Apple AirTag in so many ways
Privacy Hero II
Privacy Hero II VPN Router
ThinkPhone 25 by Motorola
I reviewed the ThinkPhone 25 by Motorola and while it's not as fast as its predecessor, it's the superior phone in so many ways
FRITZ!Box 7690 WiFi 7 Router
FRITZ!Box 7690 router review
Ulefone Armor Pad 4 Ultra Thermal
Ulefone Armor Pad 4 Ultra Thermal rugged tablet review
Unihertz Tank Pad 8849
Unihertz Tank Pad 8849 rugged tablet review
Latest in News
A young woman is working on a laptop in a relaxed office space.
I’ll admit, Microsoft’s new Windows 11 update surprised me with its usefulness, providing accessibility fixes, a gamepad keyboard layout, and PC spec cards
inZOI promotional material.
inZOI has become the most wishlisted game on Steam, but I wouldn't get too caught up in the hype
Xbox Series X and Xbox wireless controller set to a green background
Xbox Insiders are currently testing a new Game Hub feature that looks useful, but I've got mixed feelings about it
A stylized depiction of a padlocked WiFi symbol sitting in the centre of an interlocking vault.
Broadcom warns of worrying security flaws affecting VMware tools
Nespresso Vertuo Pop machine in Candy Pink with coffee drinks and capsules
My favorite Nespresso coffee maker just got a fresh new makeover, and now I love it even more
Microsoft Surface Laptop and Surface Pro devices on a table.
Hate Windows 11’s search? Microsoft is fixing it with AI, and that almost makes me want to buy a Copilot+ PC