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Microsoft: Economics make Nokia a ‘smart acquisition’

Microsoft’s gross margin from royalties on Windows Phones sold by Nokia is less than $10 per unit, but the margin will be more than $40 per unit once Nokia’s Windows Phone business is brought in house as part of Microsoft’s $7.2 billion acquisition of the Nokia Devices & Services business.

That’s one of the financial details disclosed in an extensive slide deck published by Microsoft tonight to make the case for the landmark acquisition, in which Microsoft is acquiring its biggest smartphone partner. The deck describes the deal as a “smart acquisition.”

Reference: Microsoft: Economics make Nokia a ‘smart acquisition’

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