Steve Ballmer to Pay $230.00 Per Phone to Beat Google

Discussion in 'Android News' started by cereal killer, Jan 31, 2012.

Page 1 of 2
  1. cereal killer

    cereal killer Administrator
    Staff Member

    Joined:
    Oct 29, 2009
    Messages:
    11,396
    Likes Received:
    1,280
    Trophy Points:
    558
    Location:
    Austin, TX
    Ratings:
    +1,427
    Current Phone Model:
    Nokia Lumia Icon
    [​IMG]​

    As they say, success comes at a price, and Steve Ballmer is no exception to that rule. The question on investors minds was what was he willing to pay to beat Google and Apple at their game. Doing the math, that answer is now known, and it comes out to $230.00 per phone. Microsoft and Nokia are in a joint venture to gain market share for Windows phones in its battle with Google Android. Last quarter Microsoft payed Nokia $250 million and Nokia claims to have shipped 1 million units. It's not known how many units are still sitting in inventory but doing the math that breaks down to MS paying out $250.00 a phone. Part of the agreement stipulates that Nokia pays Microsoft a licensing fee for each phone it sells. The exact details of the license fee are not known, but some have speculated that it amounts to $20.00-$30.00 per phone. Essentially Microsoft payed Nokia $250.00 to receive $20.00 or $30.00. You see where this is leading? The Lumia 710 went for $50.00 on contract so it cost Microsoft $230.00 for that same phone that the customer just bought for $50.00.

    You're probably wondering what the heck is wrong with Microsoft and how did they get to this point. First off with $50 billion in cash laying around, paying out $250 million is chump change for the software giant. Secondly, Ballmer recognizes that Microsoft has fallen way behind and a big price must be paid to catch up. They find themselves in a very precarious position because their life or death falls on Nokias shoulders. That's not a great position to be in, but here they are. They are banking on the high end Nokia Lumia 900 to compete in the market and make an impact. The Lumia 900 was a hit at CES. It was the talk of the show and blogosphere favorite. The handset is packing a serious punch with its: 4.3-inch ClearBlack AMOLED 800 x 480 capacitive touchscreen, 512MB RAM, 8-megapixel camera with a 28mm f/2.2 Carl Zeiss lens (dual-LED flash), polycarbonate-body, with a single-core 1.4GHz Qualcomm Snapdragon. A bonus, but not the biggest bonus, is that the handset will be packing an LTE modem. The biggest bonus lies in the fact that the smartphone will be offered at a mind blowing $99.99 on-contract. That low price is truly a game changer. Similar spec'd Android phones go for $199.99 on-contract and we all know how consumers love a great bargain. The stakes are high, and if Microsoft successfully pulls this off, Google just may have something to worry about.

    Source: Forbes


    ​

     
    #1 cereal killer, Jan 31, 2012
  2. tjk629

    tjk629 Silver Member

    Joined:
    Jan 5, 2010
    Messages:
    3,040
    Likes Received:
    65
    Trophy Points:
    113
    Ratings:
    +65
    Current Phone Model:
    NEXUS 6
    Personally I want to see WP7 rumble things up. Lord knows you won't be getting from RIM any time soon.
     
    #2 tjk629, Jan 31, 2012
  3. combatmedic870

    combatmedic870 Senior Member

    Joined:
    Aug 4, 2011
    Messages:
    1,335
    Likes Received:
    56
    Trophy Points:
    48
    Location:
    Portland OR
    Ratings:
    +56
    I dont understand why they went with that processor.....if they wanted to make a rumble they should have went all out on a high end phone that people want and not on a high end phone that is....not. Ive heard great things about the OS and i bet it would have ran even better on a dual core second gen chip vs a gen3 single core snapdragon with an outdated 205 gpu.

    I bet the camera rocks on that thing though. I really am liking the look of the phone!
     
    #3 combatmedic870, Jan 31, 2012
  4. ntrddragn

    ntrddragn Member

    Joined:
    Dec 6, 2009
    Messages:
    856
    Likes Received:
    7
    Trophy Points:
    18
    Ratings:
    +7
    i dont think its the phone really, nokia phones are pretty solid. they have some of the features before android or iOS did. i think its the carrier. if we were truly in a free market where i can buy a phone and activate it on any network without contracts. i would grab me a nokia not to say i dont like my nexus. my old nokia 3310 took a beating and it was still ticking. :D
     
    #4 ntrddragn, Jan 31, 2012
  5. npro1464

    npro1464 Member

    Joined:
    Sep 17, 2010
    Messages:
    416
    Likes Received:
    8
    Trophy Points:
    18
    Location:
    NJ
    Ratings:
    +8
    ...Can we flash Android over it? :icon_ devil:

    It looks like a pretty decent handset, but I'm just not sure consumers want the tile thing and another closed mobile OS (I know I don't). Nokia makes a decent product, it's such a shame that they didn't give Meego a chance, because the N9 looks like a great phone and might be perfect if it was able to access Android apps. Inevitably, I think we'll see them put out some Android handsets. I really dont think WP7 is going to pan out.
     
    #5 npro1464, Jan 31, 2012
  6. tjk629

    tjk629 Silver Member

    Joined:
    Jan 5, 2010
    Messages:
    3,040
    Likes Received:
    65
    Trophy Points:
    113
    Ratings:
    +65
    Current Phone Model:
    NEXUS 6
    Not necessarily.

    WP7 has a strict hardware requirement. I believe every single WP7 device runs a SnapDragon. My guess is MS won't allow dual core CPUs till they've made the OS takes advantage of it. For now anyways, a single core CPU is fine for WP7.
     
    #6 tjk629, Jan 31, 2012
  7. gadgetrants

    gadgetrants Senior Member

    Joined:
    Jul 28, 2010
    Messages:
    1,287
    Likes Received:
    197
    Trophy Points:
    63
    Ratings:
    +228
    Current Phone Model:
    Google Pixel
    I'm pretty fond of the "commoditization of Android" theory, which in a nutshell is "make LOTS and LOTS of Android phones, in different sizes, colors, and prices, and flood the market with them":

    Android's branding paradox, and the fast track to commoditization | ZDNet

    We can't conclude it's the main reason behind Android's skyrocketing market share in the last 2 years, but I'm sure it's helped a lot. And sometimes we forget that the high-end glamor phones that release at $200 or $300 (on contract) are for early-adopters like us -- but I'd guess the bulk of Android phone owners don't get their phone the first week it comes out. They get it when it's 6 months old and costs a penny at Wirefly, or it's free at Amazon. ;) (Ever seen a 1-penny sale on last-year's iPhone?)

    Really, Microsoft "subsidizing" phone cost is pretty much the same strategy, and I have to say, if they can keep Win8 phones well under $100 with hardware that rivals $200 Android phones, it will be a successful strategy. Whether they take over or not remains to be seen (I doubt it...I mean...those TILES!!!...), but I'd predict this time next year, we'll be saying, "Wow, Windows phones have caught on more than anyone expected."

    EDIT: Regarding single vs. dual-core (from Wikipedia):

    Windows Phone - Wikipedia, the free encyclopedia

    -Matt
     
    #7 gadgetrants, Jan 31, 2012
  8. johnomaz

    johnomaz Silver Member

    Joined:
    Jul 12, 2010
    Messages:
    3,187
    Likes Received:
    637
    Trophy Points:
    178
    Location:
    Central Valley, California
    Ratings:
    +775
    Current Phone Model:
    Google Pixel 2XL
    I've heard that WP7 phones are actually pretty damn good. The OS is great and the hardware works very well. I haven't used one and I like my Android but I have nothing against WP7 or iOS. I'd love to get a WP7 phone for work, but I doubt that will ever happen.
     
    #8 johnomaz, Jan 31, 2012
  9. brad92

    brad92 Silver Member

    Joined:
    Sep 29, 2010
    Messages:
    4,496
    Likes Received:
    17
    Trophy Points:
    153
    Location:
    TEXAS
    Ratings:
    +17
    My friend has a Windows Phone and its pretty cool. Its an HTC with slide out speakers.

    X
     
    #9 brad92, Jan 31, 2012
  10. cereal killer

    cereal killer Administrator
    Staff Member

    Joined:
    Oct 29, 2009
    Messages:
    11,396
    Likes Received:
    1,280
    Trophy Points:
    558
    Location:
    Austin, TX
    Ratings:
    +1,427
    Current Phone Model:
    Nokia Lumia Icon
    I predict this time next year Windows will be threatening to become a major player in the market. A few reasons why I believe this to be true. First, Nokia makes an EXCELLENT phone both in build quality and aesthetics. Secondly, the price point. Lastly, the $230 million Microsoft and it's partners are going to throw into advertising.

    As a side note HTC is also coming out with a stellar Windows phone. The Titan II is an awesome piece of equipment for $199. To rule Windows smartphones out entirely is something I cannot do in good faith.
     
    #10 cereal killer, Jan 31, 2012
    • Like Like x 2
  11. combatmedic870

    combatmedic870 Senior Member

    Joined:
    Aug 4, 2011
    Messages:
    1,335
    Likes Received:
    56
    Trophy Points:
    48
    Location:
    Portland OR
    Ratings:
    +56
    THIS.

    If there friend has one then they will get one. If there friend got one for cheap....even better. Word of mouth will be the biggest thing. I have a couple different friend "groups". Each one has either all Iphones or all android....its kind of odd. once windows gets that, then they shall make money...
     
    #11 combatmedic870, Jan 31, 2012
  12. nikecar

    nikecar Active Member

    Joined:
    Jun 28, 2011
    Messages:
    1,238
    Likes Received:
    19
    Trophy Points:
    38
    Ratings:
    +19
    512 memory? Bleh

    Sent from someplace, and with something that you need not worry about.
     
    #12 nikecar, Jan 31, 2012
(You must log in or sign up to post here.)
Page 1 of 2

Latest Threads

 
Title Start Date
Replies Views
Last Message
  1. eddiekeyton

    (game) the first thing that comes to your mind after reading the last post

    eddiekeyton, Jan 22, 2015
    Replies:
    9,494
    Views:
    323,258
    kmf1
    Jan 17, 2019 at 10:46 AM
  2. Sajo

    Last Post Wins Version 3

    Sajo, Aug 24, 2017
    Replies:
    6,920
    Views:
    237,645
    redbert31
    Jan 17, 2019 at 10:08 AM
  3. ladyscorpion13

    Android MeCool M8S Pro+

    ladyscorpion13, Jan 16, 2019 at 11:13 PM
    Replies:
    3
    Views:
    227
    Sajo
    Jan 17, 2019 at 6:09 AM
  4. Sajo

    New Moto Z for 2019? (and other new Moto Phone rumors)

    Sajo, Nov 20, 2018
    Replies:
    37
    Views:
    7,661
    lloydstrans
    Jan 16, 2019 at 2:53 PM
  5. xeene

    TMobile integrated scam block on network level

    xeene, Jan 10, 2019
    Replies:
    1
    Views:
    1,175
    LoudRam
    Jan 16, 2019 at 11:58 AM
  6. aubreymh99

    What is the difference between an app and a widget?

    aubreymh99, Sep 17, 2015
    Replies:
    14
    Views:
    7,873
    tasawk saudi
    Jan 16, 2019 at 10:33 AM
  7. silverfang77

    Facebook removed sharing to friends' timelines from Android share

    silverfang77, Nov 3, 2018
    Replies:
    4
    Views:
    849
    osaco
    Jan 16, 2019 at 7:25 AM
  8. crownedzero

    app lock?

    crownedzero, Apr 19, 2010
    Replies:
    7
    Views:
    5,607
    osaco
    Jan 16, 2019 at 7:21 AM
Loading...
Search tags for this page

xbox 1 titan fall server down