Microsoft confirms it makes less than $10 for each Windows Phone sold, will make $40 post-acquistion

The bottom line of the Nokia Microsoft acquisition is the EUR 5.44 billion that’ll exchange hands as part of the deal. Like most acquisitions, there are a lot more numbers under surface that explain why Microsoft decided to start the merger process now. John Paczkowski of AllThingsD has a nice rundown of the numbers behind the deal.

What’s most revealing is the gross margin on the sales of Windows Phone devices. According to the Microsoft press release, the company is now making less than $10 for each Windows Phone handset that is sold. Post acquisition, this per handset gross margin is expect to climb to $40. Of course, it goes without saying that this bump is only beneficial if Microsoft can sell a lot more handsets than Nokia did.

If you want to see more of the numbers involved in this deal, then head over to the AllThingsD article. It’s worth a read.

[Via AllThingsD]

The post Microsoft confirms it makes less than $10 for each Windows Phone sold, will make $40 post-acquistion appeared first on IntoMobile.

Microsoft confirms it makes less than $10 for each Windows Phone sold, will make $40 post-acquistion originally appeared on IntoMobile.com on 2013-09-03T05:31:46Z. FV1gMYsz9b5j