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Microsoft's Price Cuts Might Be Paying Off

With Microsoft's (NASDAQ: MSFT  )  proposed acquisition of Nokia's (NYSE: NOK  ) devices business expected to close this quarter, most investors might think Microsoft will have trouble getting more vendors onboard with Windows Phone 8. However, rumor has it that Samsung  (NASDAQOTH: SSNLF  ) is preparing to launch a new flagship Windows Phone 8 device with a 5-inch display. It's been about a year since Samsung launched its most recent Windows Phone device, the ATIV Odyssey, which is quite a long time for the South Korean company.

Furthermore, there has been speculation that Microsoft is scoring Sony (NYSE: SNE  )  and ZTE as possible partners as well, thanks to Microsoft's aggressive increase in the incentives it offers manufacturers. Sony fueled speculation of diversifying beyond Android also with some recent comments. The most effective weapon will always be by cutting its software license fee to use Windows Phone, especially when Android is open source. With all the talk of new Windows Phone manufacturers, perhaps those price cuts are paying off.

In this segment of Tech Teardown, Erin Kennedy discusses Microsoft getting more OEMs with Evan Niu, CFA, our tech and telecom bureau chief.

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  • Report this Comment On January 17, 2014, at 12:30 PM, GameBot wrote:


    MSFT is not afraid of the "cloud" they are leaders in the sector and already making more money than jam out of position they staked while others were looking at the sky and pointing.

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Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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9/2/2015 4:00 PM
MSFT $43.36 Up +1.54 +3.68%
Microsoft CAPS Rating: ***
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Nokia CAPS Rating: **
SSNLF $932.51 Up +57.51 +6.57%
Samsung CAPS Rating: ***