Microsoft To Spend $500 Million For Windows Phone 7 Launch

Microsoft will spend at least $500 million to launch its new Windows Phone 7.

According to tech news site Apple Insider, Microsoft will spend more than half a billion dollars to help its Windows Phone 7 to catch up with Google's Android devices and Apple's iPhone in the smartphone market.

Jonathan Goldberg, an analyst of telecommunication sector at Deutsche Bank, has estimated that the Redmond-based software giant will make up for its late entry into the market by spending more than $400 million on the launch of Windows Phone 7.

"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,” Goldberg told Tech Crunch.

On her visit to Microsoft headquarters, Goldberg was told that the company is planning to spend over $400 million in marketing the phone, and that an extra $100 million will be spent on engineering costs.