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Microsoft dedicate $1 billion to be taken seriously in phone market

Microsoft are taking their reentry into the smartphone sector seriously as they will spend over half a billion dollars in marketing costs alone for the Windows Phone 7 launch.

TechCrunch posted information according to guest poster Kim Mai Cutler which detailed the fact that Microsoft are throwing serious wads of cash into tackling this lucrative arena. It surely won’t be easy, but if they throw enough money into it, Microsoft normally end up successful.

Jonathan Goldbery, a telecommunications analyst at Deutsche Bank said “This is make-or-break for them. They need to do whatever it takes to stay in the game, 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.”

Sources familar with Microsoft’s manufacturer and carrier agreements says that the company will spend $1 billion on the launch, half on marketing alone and the other half on development costs.

“We have a long-term view and Microsoft has been in this position before in other businesses where we’ve had to take a long-term view, the mobile phone market is growing by leaps and bounds, but it’s still in the early stages.” says Microsoft senior product manager Greg Sullivan.

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