Rumour: Microsoft offers Samsung $1b to develop Windows Phones

Microsoft is considering offering Samsung $1 billion [£610 million] to continue to develop devices that will be able to run on the company’s Windows Phone operating system.

SamMobile report that Russian blogger Eldar Murtazin has reported the firm is offering Samsung a sum of money to agree to continue to work on devices to use the OS and challenge those made by Nokia, which holds 90 per cent of the Windows Phone market.

“Another "good" news from Microsoft - company negotiate with Samsung and offer 1 billion support if vendor will produce Windows Phone devices,” read Murtazin’s Tweet.

Nokia, which sold its devices division Microsoft for £3.2 billion, exclusively manufactures its Lumia devices for the Windows Phone OS and it has almost single-handedly helped it reach third position in the mobile OS market.

Windows Phone took third position from BlackBerry way back in May and has been making inroads into the lead built up by Android and iOS ever since. At the last check in November it accounted for 9.8 per cent of all smartphone sales across Germany, France, Spain, Italy and the UK in Q3 2013. In comparison Android accounts for a 71.9 per cent of the market, which was a small rise of just 4.2 per cent compared to Q3 2012.

Samsung, meanwhile, is by far the largest smartphone manufacturer when it comes to devices shipped as it sent out 81.2 million units during Q3 2013, which was more than Apple, Huawei, Lenovo and LG combined.

The news comes the day after rumours of Nokia developing a device to run on Android became more real than ever before. It’s being speculated that the device will be of the low-end variety similar to the Asha range it currently markets and will take advantage of Google’s Android Open Source Platform.