27 August 2010 | Author: J. Morton News Editor

Experts say Microsoft may pour $400 million into Windows Phone 7 rollout

Industry experts have predicted that ubiquitous software giant Microsoft will have another go at the mobile phone operating system, only this time it will be putting its money where its mouth is, to the tune of $500 million.

The prediction for these costs includes marketing the operating system, as well as payment to developers and manufacturers to ensure the platform is supported on multiple handsets.

Telecommunications analyst for Deutsch Bank Jonathan Goldberg told TechCrunch that Microsoft will likely spend upwards of $400 million on marketing costs alone for the launch, not including costs required to partner with handset manufacturers, developers and mobile providers.

However, the money may be well spent if the campaign is successful, a result the firm will need to maintain relevancy in the smart phone age.

"This is make-or-break for them. They need to do whatever it takes to stay in the game," Goldberg said.

Goldberg said that the battle for smart phone OS supremacy's far from over, and Microsoft still could come out a winner.

"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," he said.

Officials for the company, whilst not commenting on the figures for roll-out, asserted that Microsoft has a "long term" view of the mobile phone market, and their strategies would reflect this.

"Microsoft has been in this position before in other businesses where we've had to take a long-term view," according to Greg Sullivan, senior product manager at Microsoft. "The mobile phone market is growing by leaps and bounds, but it's still in the early stages."

Once re-entering the fracas, Microsoft will have to gain ground on Symbian, RIM Blackberry, Apple iPhone and Android phones, which currently dominate the market.

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