Digitimes claim Microsoft will share Windows 8 Marketplace profits with OEMs

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It has recently been revealed that Google shares much of their app store profits with carriers and OEMs.

Now Digitimes claims Microsoft is planning to do the same with Windows 8 OEMs.

According to Digitimes Microsoft plans to offer developers that join the development of Windows-based apps a profit share higher than the 70% on the iOS app store and Android Market.

In addition, hardware brand vendors will also enjoy a profit share if consumers purchase apps that are recommended by them.  The exact share has however not been revealed.

Much like Nokia, Microsoft is expecting OEMs to cultivate developers and applications, and to guide buyers to their collections. Microsoft’s new strategy is expected to open a brand new profit source for the vendors, according to Digitimes’s sources, which, given the size of the Windows ecosystem, may be billions of dollars, which will hopefully motivate OEMs to keep profit margins on hardware low and encourage the growth of Windows 8.

Read more at Digitimes here.

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  • Anonymous

    This was obvious and inevitable as part of the reason Apple can sell its hardware for such a low price is that they know the real profit is in putting iTunes in as many hands as possible and getting the post initial sale revenue. For Microsoft to compete it will have to find some way of sharing the profits from the windows 8 marketplace. Since MS has already piloted this with Windows Phone it was always clear that tis was going to be part of their strategy for getting the price of the hardware down to a point of competitiveness with the other ecosystems. How much of that post market revenue and how those sales will be shared should prove to be interesting.

    • http://www.facebook.com/people/Ali-Baba/100003388541734 Ali Baba

      Yes. they did that with xbox. Low cost hardware (at one point it was a loss maker). Made up for it via Live subscription and games sales.  

    • Anonymous

      For what i have understood the profit are minimal on the app store. Google alone makes just 500 million a year from world most popular smartphone OS.

      Though this is indeed logical as MS collects it’s cash from selling software, licensing costs of WP. Marketplace should be and is more joint veture with everybody involved.

    • http://pulse.yahoo.com/_YOYSNZPLYETQO4W4AT4ZU3BBK4 The Muffin Man


      part of the reason Apple can sell its hardware for such a low price”

      Did you lose your mind? What planet/country are you living on? Apple is a hardware company, not a software company. They don’t make any money off iTunes/Apps, etc. They charge 200% more for 50% the product because their user base is not as technologically savvy as MS consumers. Also, let it be known that in 2011 Apple made $26.3 billion in profit and MS… $24.5 billion. Apple does well, but not that well.

      • Asgardi

        Yeah Apple hardware is very very expensive. Only operator subsidies makes it look like cheap for consumers but the real price is paid in the two-year $2000 deal. Cheap? Yeah sure :D

    • http://www.jeffkibuule.com Jeff Kibuule

      Apple barely breaks even on the iTunes store. It costs a lot of money to run that infrastructure (a free app can still be 2GB in size, which takes a lot of bandwidth if 5 million people download it + updates).

      Revenue sharing is more about keeping OEMs in the loop to promote Windows 8 products over their Android cousins (like same hardware, different OS) in order to continuously generate revenue, even after the sale of the device.

      • J A

        Apple is a rookie in anything cloud, they don’t know what they are doing in a space where big boys like MS are kings delivering secure enterprise and government solutions.

        This is not a bad idea to entice OEMs to deliver lower device cost. In any case, just as with other Windows OSes there is no stippoing Win8.

      • Anonymous

        Perhaps it is expensive to operate, but Microsoft has a much wider user base to sell to, and with the new form factors like the Asus Transformer Book that I personally will take a huge chunk out of the laptop sales market, there is a great potential to make a huge profit for OEMs without having to invest in that infrastructure if MS hosts it like they do for Windows Phone. This could be the incentive for OEMs to lower the price enough to make the wide spread adoption of Windows 8 attractive and to have companies upgrade since Microsoft is likely to use the post initial sale to justify lowering the price of Windows as well. If they could encourage the widespread adoption of Windows 8, it could outclass iTunes by sheer volume alone. Just a thought.

  • rsgx

    If this is true, OEMs are going to eat WP8 and W8 up.

  • Guest

    This new proft sharing plan sounds like it is only for Windows 8 desktop OS with Metro apps.  But regular desktop applications do not even require a store.  Anyway, does the same plan apply to the stores of Windows RT and Windows Phone 8 apps?

  • Fdaf31

    I bought the Nokia 900 and its has to be a best smartphone I’ve ever bought. I love those big tiles that update, the picture slideshow, putting videos with the tiles and the beautiful design of the apps. Apple and google phones are a pain now compared to this. Bring it on Microsoft. Count me in for a tablet, a upgrade for my desktop and I may even buy an Xbox and Kinect. I though that was just for gamers. Very happy with this Nokia windows phone. Thanks Microsoft.