Microsoft spend over $500 Million for Winpho7 Promotion

Microsoft spend more than $500 million dollar with the intention to start its Windows phone 7 project successfully. We know that company has to face the tough competition in the market as producers of Blackberry Smartphone, the iPhone and Android are the well-established competitors who already have a large market share.

It is expected that Microsoft has a plan to invest $400 million dollars only for the marketing and promotional campaign of their upcoming Winpho 7. We already unveiled a number of WinPho7 carrier of Samsung, HTC, Sony Ericsson etc.  It is also in the plan that the company will use $100 Million for clearance of developers and original equipments manufacturer’s payments. The purpose of spending a massive amount to get Windows Phone 7 on par with existing platforms as much as possible, so that it can stand a chance.

According to some sources, it is demonstrated that Microsoft will spend more than $1 billion for both marketing and manufacturing costs in the first year of Windows phone 7.

Deutsche Bank telecommunications analyst Jonathan Goldberg

“Microsoft has already committed to pay millions of dollars for “non-recurring engineering” costs in order to counterbalance development costs for OEMs.”

“This is make-or-break for them. They need to do whatever it takes to stay in the game. It’s still wide open. They don’t have to take share from Android or Apple, so long as they can attract enough consumers switching from feature phones.”

It is not the first time when Microsoft spends so much; before the launch of Xbox original Microsoft did the same. We just hope that Microsoft continues with Traditional success as it got in  the gaming and  the software fields.