Microsoft Windows Phone 7 Costs Could Skyrocket
Windows Phone 7 will cost Microsoft nearly a half-billion dollars in marketing during the smartphone operating system's initial rollout, says one analyst.
"This is make-or-break for them. They need to do whatever it takes to stay in the game," Jonathan Goldberg, an analyst with Deutsche Bank, told TechCrunch Aug. 26. "They don't have to take share from Android or Apple, so long as they can attract enough consumers switching from feature phones."
Goldberg estimated Microsoft's marketing tab for Windows Phone 7 at $400 million, once the devices launch later in 2010. That adds to the company's already substantial development costs for the platform. Goldberg also suggested that HTC, Samsung and LG Electronics remain the primary Windows Phone 7 handset manufacturers.