Microsoft has been considering offering a free version of Windows Phone to smartphone makers for months now, and it appears the company has signed its first free license deals recently. The Times of India reports that
Microsoft is waiving the Windows Phone license fee for two Indian phone
makers — Karbonn and Lava (Xolo). Both were recently announced as new Windows Phone makers,
and currently create low-cost Android handsets. Microsoft has been
reportedly talking to the pair since last year, but agreements to build
Windows Phones only came after the license fee was dropped.
While Microsoft refuses to
discuss individual license deals, it's clear that any elimination of
fees is linked directly to the company's efforts to compete with
Google's Android operating system. The Times of India report,
cited to sources and anonymous executives, matches similar rumors that
surfaced in October. Microsoft was said to be discussing cutting or eliminating the Windows Phone license fee for HTC,
providing the phone maker agreed to offer the operating system as a
“separate option” on its Android handsets. It appears at least one phone
maker, Karbonn, will offer a “dual-boot” phone with both Android and Windows Phone. Microsoft is also cutting license fees for its desktop version of Windows in an effort to entice PC makers to produce more low-cost tablets and laptops.
Microsoft usually charges between $5 and $15 per handset
Microsoft currently charges
phone makers a license fee to use Windows Phone, and that charge is
thought to be between $5 and $15 per handset. If the Times of India
reports are accurate, then it’s likely that Microsoft is dropping the
fee in specific growth markets to increase the number of Windows Phone
handsets in the market. Elimination of a license fee could potentially
be offset against marketing efforts that Microsoft usually offers
Windows Phone makers.
Microsoft is now planning to release Windows Phone 8.1 in the coming months,
allowing phone makers to bring low-cost handsets to market. Changes
include dual-SIM support and on-screen buttons in an effort to make it
easier for Android phone makers to modify their devices for Windows
Phone. Microsoft is also helping smaller manufacturers, stores, and
operators create white-label Windows Phone devices with low
specifications and low prices via a web-based hardware portal.
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