Is Microsoft’s business with Nokia costing it money? So far Yes!

Friday, 20 April 2012
IT giant Microsoft's Windows Phone division made a loss in the first quarter. Payments to keep Nokia going are reported to be largely behind this decline.

Microsoft's business entertainment and devices division, which includes the mobile Smartphone, market Windows Phone, showed a deterioration of its earnings by Skr3 billion in the first quarter, compared with same period last year, according to reports.

The business area had a quarterly loss of $ 229 million, or Skr1.5 billion.
Microsoft reportedly used license revenues to keep Nokia, the Finnish mobile manufacturer to work with the uses of Windows for smartphones. But the trend is not working well at the moment.
Nokia sold a quarter fewer phones than the last quarter of last year. Microsoft paid Nokia Skr1.6 billion in the quarter as part of cooperation on Windows Phone platform, much as in the previous quarter.

The business area includes not only Windows Phone and Xbox 360 but even Skype. One reason for the deterioration in revenue was that the game console, Xbox 360 sales fell by a third. Revenue from Skype should have slowed down the decrease in sales during the quarter.

In Europe, 15.8 million Nokia handsets were sold in the first quarter. This can be compared with October – December when the number was 25.3 million. Globally, Nokia's sales of smart phones backed by 38 percent.
By Scancomark.se Team

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