Microsoft invests billion dollars in Windows Phone 7 launch

The release of Microsoft’s new mobile operating system could cost the company a billion dollars. About half is spent on marketing, while the other half is spent on OS development costs.

The Redmond-based company is spending about $400 million on marketing for the launch of the mobile OS reports telecom analyst Jonathan Goldberg, who obtained his information from Microsoft employees. In addition, Microsoft would have to pay money to hardware partners that participate in the release of Windows Phone 7 devices.

Microsoft would also financially support developers by guaranteeing a certain income when releasing apps in Microsoft’s download store. In the first year after the launch of Windows Phone 7, the invested amount could even reach several billion dollars, Goldberg predicts.

Microsoft announced Windows Phone 7 at the Mobile World Congress in Barcelona. The OS has a completely redesigned interface, and integration with social networking sites and services from Microsoft. The first devices with Windows Phone 7 are expected to be released this year. Samsung, LG, HTC and Asus, among others, will release devices with Microsoft’s new mobile operating system.