Steve Ballmer willing to pay $230 per Windows Phone to beat Apple iPhone, Google Android

“The question investors, technologists and strategists have long been asking is, ‘What is Steve Ballmer willing to pay to beat Apple and Google?’ Now we have a small part of the answer, $230 per cell phone,” Nigam Arora writes for Forbes. “Microsoft is in a venture with Nokia to gain market share for Windows phones in its battle with Google Android. In the last quarter, Microsoft paid $250 million to Nokia.”
Arora writes, “The $230 number shows desperation, and there is no doubt that the Windows phone will live or die based on how well Nokia does. How does Microsoft justify taking such a loss? With about $50 billion in cash, $250 million is peanuts for Microsoft. Microsoft simply fell behind Apple and Google, and Ballmer recognizes that a big price has to be paid to catch up. The shocker is that AT&T may price the phone at $99 with a two-year contract. The low price is a game changer. At present, comparable phones from Apple and Samsung are priced at $199 with a two year contract… One thing is for certain, introducing Lumia 900 at such a low price is like stomping on the downtrodden RIM.”


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