Microsoft Corporation (MSFT) is dropping Windows Phone fees for 2 OEMS

Posted Mar 13, 2014

One of the reasons why Google Android is dominating is because it is open-source. However, Google makes up for the loss in licensing fees through sales made through the Android app store. Now Microsoft Corporation (NASDAQ:MSFT) is going to take a similar approach by offering to drop licensing fees for at least two OEMs, according to The Times of India. The two manufacturers are Karbonn and Lava.

Both of these OEMs are among in a group of device makers that will start building Windows Phone devices. This means that the two companies will likely save between $5 and $15 per handset. Apparently Karbonn and Lava were tough negotiators and only agreed to consider Windows Phone if the license fees were dropped.

If these deals go well, then it may encourage the Redmond, Washington based software giant to implement this business model with several other OEMs.

[Source: Times of India / TheVerge]