Microsoft To Share 5% Of Income Earned Through Sales Of Windows Store Apps With OEMs

Windows Store

Microsoft is offering an attractive deal for the OEMs to promote Windows Store and the apps listed in it. If OEMs want to promote Windows Store and its apps in a really good way, they need to have touchscreens on the PCs which I think is Microsoft’s  goal for this program.

If the OEM becomes a Windows Store partner, it will be able to receive 5% of net receipts earned through sales of Windows Store apps purchased from the Windows Store on OEM Activation (OA) 3.0-enabled, Genuine Windows 8.1 PCs that they sell. Similar to how app developers can see their total app downloads and other metrics, OEMs can keep track of total app downloads through their PCs, etc,.

Microsoft is also suggesting few other ways for OEMs to make money out of Windows Store. The revenue share for the developer of a Windows Store app that sells through the Store starts at 70%. When an app’s sales reach USD $25,000, the developer revenue share for that app increases to 80%. If OEM can become a developer, they can receive the same levels of app- based revenue share at the same thresholds.

OEMs have s branded section in the Windows Store. So, they can monetize through placement of apps in your OEM branded section of the store. Any monetization that they negotiate with a developer or developers in return for featuring their apps in the Store is beyond the scope of the Store. So, they are free to negotiate those arrangements. Similarly, they can monetize through placement of apps on Start screen through preinstallation as well.

Hopefully, this will encourage more OEMs to embrace touch devices running Windows.

  • Yuan Taizong

    Apple became the the most ”valuable company” through their app stores, Microsoft is now competing head-to-head and Windows has more apps than O.S. X so we can see that Microsoft might soon get its pre-Vista value back (in the distant future).

  • Mike366

    Great idea, great strategy!

    • cybersaurusrex

      It looks like Microsoft is finally prepared to fight again: (1) licensing Windows Phone OS for free to compete with Android, (2) sharing app profits with OEMs, and (3) combining all three OSes into one Windows.
      They may just have a fighting chance after all.

  • Vincent Haakmat

    I hope this doesn’t lead to bunch of MetroUI crapware preinstalled on the PCs, because that will have an adverse effect on users

    • Kreft

      That’s the first thing I thought about. I guess as long as you can uninstall it won’t be too bad but would still be annoying.

    • Allan Cantillo

      But it is 5% of income? So what has to do a preinstalled app on the PC?
      That 5% applies when you really BUY an app, and only in that case.

      • Vincent Haakmat

        I know, but nothing stops them for installing the trial versions of them in the hope that you will purchase them when the trial period ends. Like they are doing now

  • Allan Cantillo

    And what about the recent policy of 81 devices that you are allowed to install an app?
    Only the first device where you actually click ‘buy’…. I guess so

  • tomakali

    Ads on pirated Windows
    more hardware controls
    can make Microsoft more profitable… in profit and marketshare…

    • Alex Keuano

      More profitable in profit? Okay.