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Vista House (www.vista123.com): Microsoft's $ one,000,000,000 investment marketing and R & D Nokia WP7 phone

(Lin Jingdong) Beijing March 8, according to foreign media reports, according to two Name to informed sources, Microsoft will pay over one billion U.S. dollars Nokia's Windows Mobile to promote research and development expenses, which is both in the smart phone software part of the cooperation agreement.
According to informed sources, Nokia will use their mobile phones to pay for each set of Windows software, some user fees, these costs will be reduced because of Nokia's own software research and development budget offset. Cooperation agreement is valid for 5 years.
If the success of this collaboration will benefit both sides. This cooperation will help alleviate the Microsoft and Nokia smart phone market from Apple and Google competition. Since February 11 announced a partnership since the Nokia shares have fallen by 26%, reflecting the market for Nokia to switch to Microsoft's latest operating system concerned because Windows Phone 7 operating system was launched less than 6 months, the market share also below 10%.
Nokia to cut costs in order to stop the downward trend in operating margins, its operating margin from 19% ten years ago, dropped to 4.9% last year. Nordic Union Bank (Nordea Bank) analysts 萨米萨尔卡 Metz (Sami Sarkamies) may be expected to Nokia in 2011 and 2012, its products and services, about one third of R & D budget cuts, it is this last part of the expenses about 30 billion euros.
Microsoft spokesman Meilisuoha Vale (Melissa Havel) refusing to disclose details of the transaction. Nokia spokesman Lori Armstrong (Laurie Armstrong) said the two sides have not signed a final agreement, after the signing of such definitive agreement, the company will announce more detailed information.
royalty

According to informed sources, Nokia will pay royalties to Microsoft to Nokia to help Microsoft to pay even more than one billion U.S. dollars to promote research and development costs and still get a profit. Microsoft will begin selling phone before Nokia pay a fee to it, which means that Microsoft will bear part of the upfront costs.
Microsoft shareholders want the company can also save its mobile software business and cut costs. Microsoft will not release the results of mobile software business, but rather that part of the Xbox business performance and results with the published statistics, it is difficult to assess its external financial position of mobile phone software business.
Microsoft CEO Steve Ballmer has already felt the pressure from investors and board of directors, Google and Microsoft, Apple has been taken away some market share, it must increase sales of mobile phone software. Microsoft shares have fallen this year by 8%.
stand out

According to one informed source said, Microsoft hopes to pay the costs of promotion and research and development so that Nokia no longer consider the use of Google's Android operating system. Nokia chose to partner with Microsoft, but also taking into account that Windows Phone Software Software to be newer than Android, Windows Phone Software-based phones are relatively small, so that it will have a greater opportunity to stand out.
According to one informed source said the agreement also required Microsoft to pay royalties to Nokia.
part of the deal as a collaboration, Microsoft will own geographical positioning service using Nokia's Navteq map products,Microsoft Office 2010 Professional, and sales and user location on the local advertising and coupons. If the program is successful, Nokia will also get more revenue. Microsoft CEO Andy Reese (Andy Lees) said last month that both companies will search and advertising services into.
generate profits

Microsoft Chief Financial Officer Peter Klein (Peter Klein) at an investor conference last week, said sales revenue for these services, the profitability of the cooperation deal level is very important.
Klein said:
the two sides announced a partnership deal, Nokia CEO, Elop said that the agreement Nokia will increase the value of billions of dollars, but he did not give the expected data.
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