Microsoft offers Windows Phone OS free to Indian smartphone companies?

Microsoft offers Windows Phone OS free to Indian smartphone companies?
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Will the 'free' Windows Phone OS manoeuvre help Microsoft beat Android and iOS?

Microsoft is leaving no stone unturned to ensure growth of Windows Phone OS, which faces a very tough competition against Google’s Android and Apple’s iOS. According to a Times of India report, Microsoft has gone one step further to push its OS, waiving licence fee and offering it for free to at least two Indian smartphone makers.

Citing multiple industry sources privy to Microsoft’s deals with Indian players, the report says the Redmond-based company was in talks with local firms for launching affordable Windows Phone devices since last year. The deals were finalised only after Microsoft agreed to remove the licence fee from phone makers – a move that has surprised many, considering the OS has been main revenue source for Microsoft and that it did not offer the OS to Nokia for free.

According to the report, Microsoft charged Nokia between $20 to $30 for each Lumia device. Nokia was exclusively offering Windows Phone smartphones in 2011.

At the recently held MWC 2014, Microsoft updated its device partners list for Windows Phone 8. The new list of device makers for Window Phone includes Foxconn, Gionee, JSR, Longcheer, Xolo (Lava) and Karbonn along with previous manufacturers Samsung, HTC, Huawei and ZTE.

One of the recent reports said Karbonn will be launching a dual-OS smartphone. ”Microsoft has eased the regulations and is opening up its platform for other players. We signed the agreement two days ago and will launch a range of Windows phones in about three months,” Times of India quotes company’s chairman Sudhir Hasija as saying.

“For our planned Windows Phone handsets, we are not paying Microsoft a licence fee. The company is obviously exploring new models for Windows Phone. It must have realized that the older model where it licenced the OS did not work out well, even with Nokia’s support,” TOI quotes a senior executive with an Indian phone company as saying.

“Free Windows Phone is part of a strategic partnership. For both Microsoft and us, it is an experiment. Windows Phone still doesn’t have lot of appeal in the market but now that it doesn’t have any licence fee, it becomes easier for us to experiment with it,” another senior executive is quoted as saying.

The move – unprecedented – has drawn positive reaction from the industry experts. They believe ‘free’ Windows Phone will definitely help Microsoft boost its presence in the mobile segment.

“If Microsoft has decided to waive the licence fee for Windows Phone, it is great news for local phone makers. Local phone makers are comfortable with Android. They are still not sure of the appeal of Windows Phone. If the OS is free to use, they will feel more confident while experimenting with it in the market,” said Manasi Yadav, a senior market analyst at IDC.

Source: Times of India

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