Microsoft to spend over $500m to catch up to iPhone

Posted Aug 29, 2010 at 7:00AM EST by QJ Staff

Listed in: News Tags: apple, ios, news

Microsoft executives told Goldberg during a recent visit to company headquarters that the company, carriers, and manufacturing partners, would spend "billions" of dollars in the first year on marketing and development of Windows Phone 7.

Another source estimated a $1 billion price tag for the launch, with half of it going to marketing. $500 million is roughly the equivalent of Apple's entire advertising budget for its 2009 fiscal year. In its 2009 Form 10-K filing to the SEC, the Cupertino, Calif., company listed $501 million in advertising expenses. Microsoft's fiscal 2009 advertising budget was $1.4 billion. According to the report, Microsoft, in order to attract third-party developers to its platform, is offering revenue guarantees and other financial support. The company will have an uphill battle against Apple and Google, which already have well-established ecosystems for third-party applications.

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Microsoft to spend over $500m to catch up to iPhone

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