Mobile Web usage is on the rise, with users who access the Web through mobile devices having nearly doubled every year since 2009 according to analytics firm StatCounter. Web usage on mobile devices grew to 8.5% in January of 2012, up from 4.3% in the same month a year earlier. “While global Internet usage through mobiles is still under 10%, the pace of growth is remarkable,” said StatCounter CEO Aodhan Cullen. Apple leads the way in both the United States and United Kingdom, however Nokia is still the global leader — driven by its dominance in India — with nearly 40% of mobile Web browsing. In North America, Apple has a massive share of 59.11%, with Samsung and RIM coming in at 11.43% and 10.06%, respectively. Apple comes in second globally with roughly 30%, followed by Samsung with a 14% share. Android manufactures combined to account for less than 25% of mobile Web usage, with Research in Motion falling to roughly 8%. The Blackberry maker ranks second behind Apple in the U.K., however. Read on for StatCounter’s press release.

Mobile internet usage is doubling year on year

Nokia global leader, Apple king in US and UK

Boston, USA and Dublin, Ireland; Monday, 6th February, 2012: Global internet usage through mobile devices, not including tablets*, has almost doubled to 8.5% in January 2012 from 4.3% last year according to free web analytics company StatCounter. The firm’s research arm StatCounter Global Stats highlights the increasing use of mobile devices to access the internet with market share doubling year on year since 2009 (Table A below).

“While global internet usage through mobiles is still under 10%, the pace of growth is remarkable,” commented Aodhan Cullen, CEO, StatCounter.

StatCounter has also announced that new stats regarding mobile vendors are now available on its Global Stats website. The firm has been compiling and refining these stats for some time and has now made the beta project public. Based on initial research covering all traffic to the StatCounter network, Nokia leads worldwide, most probably driven by its dominance in India. Apple is second globally but leads the US and UK markets. In the UK RIM is second only to Apple.

“Following repeated requests, we’ve decided to make our new mobile vendor stats publicly available,” commented Aodhan Cullen, StatCounter. “As the mobile space is constantly evolving, we keep our detection under constant review.” Anyone wishing to contribute to the detection project can submit feedback using the detect tool: http://gs.statcounter.com/detect

StatCounter (http://statcounter.com/) provides free website traffic analysis. This allows website owners, developers and bloggers to capture website intelligence in real time e.g. number of visitors, visitors by country/region, search terms, popular pages, download stats, exit links and other data.

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Table A:
Global use of mobile devices to access internet
(excludes tablets*)

Jan 2009: 0.7%
Jan 2010: 1.6%
Jan 2011: 4.3%
Jan 2012: 8.5%
Source: StatCounter Global Stats
—————————————————–

* StatCounter defines mobile device as a pocket-sized computing device, typically having a display screen with touch input or a miniature keyboard.

There’s no question that Nokia is betting big on the success of Windows Phone, and we have to admit that it has already unveiled several of the best Windows Phone handsets out there. But the Finnish phone maker is reportedly so convinced that Windows Phone will succeed that it doesn’t have a backup plan of any sort. ”Plan B is that Plan A is to succeed,” Nokia manager Victor Saeijs is said to have told Swedish financial newspaper Dagens Industri. We know Nokia is cooking something up for its low-end phones so all of the vendor’s eggs really aren’t in one basket, but its good to see Nokia so confident in its strategy. Nokia will reportedly unveil at least one new high-end smartphone later this month at Mobile World Congress, and we’ll be on hand to bring you all the news as it breaks,

[Via Engadget]

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Information has been appearing in dribs and drabs about Nokia’s last Symbian smartphone, the Nokia 803, but a trusted source of ours has come through with some details that vary a bit from earlier reports. For starters, the Nokia 803 will run Symbian Belle and serve it up on a 4-inch AMOLED display instead of the smaller 3.5-inch screen that had been reported. An HDMI-out port, microSIM support and NFC are all a go as well. We have also been told that the Nokia 803 will feature one of the largest camera sensors — if not the largest camera sensor — ever seen on a mobile phone. The Nokia 803 is currently expected to be released in the May timeframe.

Nokia plans to eliminate 4,000 jobs as part of a major cost-cutting effort that will see much of its manufacturing shift to Asia. The cuts will be made across three Nokia plants — 2,300 workers will be shed in Komarom, Hungary, 700 will lose their jobs in Reynosa, Mexico and 1,000 more in Salo, Finland will be laid off. Each of the three plants will continue to operate at reduced capacities, and the move is part of a larger effort to cut costs following the €1 billion loss Nokia reported last quarter. ”Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” Nokia EVP of Markets Niklas Savander said in a statement. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.” Nokia’s full press release follows below.

Nokia plans changes to its manufacturing operations to increase efficiency in smartphone production

Nokia Corporation
Stock exchange release
February 8, 2012 at 10:00 (CET +1)

Espoo, Finland – Nokia has today announced planned changes at its factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. The measures follow a review of smartphone manufacturing operations that Nokia announced last September and aim to increase the company’s competitiveness in the diverse global mobile device market.

These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas. Device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based.

“With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs,” said Niklas Savander, Nokia executive vice president, Markets.

“Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” said Savander. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.”

As a consequence of the plans, the number of steps in manufacturing and the amount of work carried out at the sites in Komarom, Reynosa and Salo are expected to decrease substantially. The changes are anticipated to impact approximately 4,000 employees in total.

Personnel reductions are planned to be phased through the end of 2012. Nokia will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.

T-Mobile announced on Tuesday the company’s Valentine’s Day sale on all 4G smartphones and tablets. “T-Mobile has a commitment to make the 4G experience affordable and accessible to everyone, so this sweet deal on smartphones and tablets is our Valentine’s gift to consumers,” said T-Mobile’s senior vice president of marketing, John Clelland. “No matter where loved ones live, T-Mobile wants to bring them closer with unlimited talking, photo sharing, video chatting, texting, and more.” The carrier is offering the Samsung Galaxy S II, BlackBerry Bold 9900, HTC Amaze 4G, Lumia 710, SpringBoard tablet and other 4G devices for free with a new two-year agreement. This one-day sale is scheduled for this Saturday, February 11th. Read on for T-Mobile’s press release.

Cupid’s Arrow Hits Mark: T-Mobile Offers Free 4G Phones to Celebrate Valentine’s

For one day only, on Feb.11, all of T-Mobile’s 4G smartphones and select mobile broadband devices are free with the switch to a qualifying two-year plan

BELLEVUE, Wash. — Feb. 7, 2012 — In the spirit of the season, T-Mobile USA, Inc. will show consumers lots of love with another jaw-dropping promotion for its “Valentine’s Day Sale.” For one day only, Saturday, Feb. 11, T-Mobile will give customers the chance to get their hands on the latest 4G smartphones and select tablets for free, making a perfect gift for loved ones or themselves. The promotion includes T-Mobile’s fastest 4G smartphones and select tablets running on America’s Largest 4G Network® such as the Samsung Galaxy S™ II1 and the T-Mobile® SpringBoard™ with Google™.

New and existing eligible customers can take advantage of this deal receiving their device for free after a mail-in rebate card when they sign up for a new two-year contract on any qualifying Classic Plan™2 or for a $0.00 down payment after mail-in rebate card when signing up on a qualifying Unlimited Value™3 Plan.

“T-Mobile has a commitment to make the 4G experience affordable and accessible to everyone, so this sweet deal on smartphones and tablets is our Valentine’s gift to consumers,” said John Clelland, senior vice president of marketing, T-Mobile USA. “No matter where loved ones live, T-Mobile wants to bring them closer with unlimited talking, photo sharing, video chatting, texting, and more.”

A recent online Omnibus survey4 with Harris Interactive found that four-in-ten (44%) of first time smartphone buyers in 2012 say the cost of the data plan associated with the smartphone is the most influential reason they have not purchased a smartphone before. The value for customers extends beyond the “Valentine’s Day Sale” as T-Mobile offers the best rate plan pricing on America’s Largest 4G Network.

Microsoft may be planning to launch a special bundle that includes the Nokia Lumia 800 and several accessories for $899. Citing unnamed industry sources, The Verge said the deal will kick off on February 14th and will include a Bluetooth headset, a Purity HD stereo headset and Nokia’s Play 360 wireless speaker. Microsoft will reportedly not be offering the Lumia 800 as a stand-alone product. $899 seems a bit steep to us, even considering that consumers will be getting an unlocked device and a bundle of solid accessories. After all, AT&T will be launching the sub-$100 Lumia 900 with 4G LTE support and a bigger screen just one month later.

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Nokia will unveil at least one new high-end smartphone during the Mobile World Congress trade show in Barcelona later this month, Forbes said Tuesday. The Finnish company announced the Lumia 900, a Windows Phone device destined for AT&T, during the Consumer Electronics Show in early January but consumers are still waiting to hear what the company will launch as a follow-up to the Lumia 800 in Europe. Early rumors suggested that Nokia was planning to announce a Lumia 910 device with HSPA+ connectivity and a 12-megapixel camera, but Nokia recently shot down rumors of the camera upgrade. BGR will be reporting live from Mobile World Congress later this month so be we’ll be sure to bring you all the news as it breaks.

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Research In Motion executivess took the stage during BlackBerry DevCon Europe on Tuesday to clear up a few facts about the company’s success with its BlackBerry App World marketplace. RIM’s new CEO Thorsten Heins said BlackBerry App World is now home to more than 60,000 applications, which is a fraction of what’s available in the Android Market or iTunes App Store, and that BlackBerry devices are among the most popular smartphones purchased in the United Kingdom. RIM’s vice president of developer relations Alec Saunders also said that there are 174 million app downloads per month, or about 6 million applications downloaded per day, The Verge reported. Saunders argued that RIM’s BlackBerry App World has 43% more daily downloads per app than Apple’s own iTunes App Store and he said App World can be more profitable as well — BlackBerry apps supposedly earn about 40% more than their Android counterparts, and 13% of BlackBerry developers have made more than $100,000 from their apps. In addition to the app figures, Saunders and Nokia’s head of Qt announced that RIM’s BlackBerry PlayBook OS now supports the Qt developer framework, originally intended for Nokia devices.

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Thanks to a strong fourth quarter, Apple has passed LG to become the world’s third largest cell phone vendor by volume, according to new estimates from market research firm IDC. The worldwide mobile phone market grew 6.1%  year-over-year in the fourth quarter as the feature phone market continued to decline to its lowest growth rate in two years. Vendors shipped 427.4 million phones in the fourth quarter compared to 402.8 million units in the same quarter last year. Nokia and Samsung remained the top and No.2 vendors, respectively, though Nokia’s phone shipments slid 7.9% while shipments of Samsung handsets grew 17.6% compared to the same quarter in 2010. Read on for more

“Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments,” IDC stated in a press release. ”That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.” The firm’s full press release follows below.

Worldwide Mobile Phone Market Maintains Its Growth Trajectory in the Fourth Quarter Despite Soft Demand for Feature Phones, According to IDC 

01 Feb 2012

FRAMINGHAM, Mass. February 1, 2011 – The worldwide mobile phone market grew 6.1% year over year in the fourth quarter of 2011 (4Q11), as the feature phone market declined faster than anticipated, dragging market growth down to its lowest point in over two years. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 427.4 million units in 4Q11 compared to 402.8 million units in the fourth quarter of 2010. The 6.1% year-over-year growth was higher than IDC’s forecast of 4.4% for the quarter, but weaker than the 9.3% growth in 3Q11.

“The mobile phone market exhibited unusually low growth last quarter, which shows it is not immune to weaker macroeconomic conditions worldwide,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “The introduction of high-growth products such as the iPhone 4S, which shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since 3Q09 when the global economic recession was in full bloom.”

While smartphones continue to grow in popularity, feature phones still comprise the majority of all mobile phone shipments. “Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use.

“At the same time, feature phones are fighting to maintain their market share,” added Llamas. “To meet the challenge, feature phones are becoming more like smartphones, incorporating mobile Internet and third-party applications. While this may not stem the smartphone tide, it should slow down the rate at which smartphones are selected over feature phones.”

Regional Highlights

• In Asia/Pacific (excluding Japan), the feature phone market declined in conjunction with the region’s largest feature phone markets – China, India, and Indonesia. The impact on phone demand due to the holiday season, which generally means a sales uplift, was minimal in this category. Meanwhile, smartphones maintained their growth momentum as the iPhone 4S was well received in Australia, Hong Kong, Korea, and Taiwan. Competition in the Android market intensified as mid-range vendors, such as Lenovo, Coolpad, and Huawei, shipped large numbers in their home market of China. Elsewhere, the rest of the Android market was dominated by Samsung, followed by HTC and LG. Windows Phone gained some momentum thanks to sales of the HTC Titan and Radar and Nokia Lumia. In Japan, pent-up demand for mobile phones after last year’s natural disasters and weakened economy meant unusually high growth for the country’s mobile phone market. Smartphone sellers, such as Apple, fared particularly well while non-Japanese vendors continue to make incremental gains in the market.

• The Western European mobile phone market was impacted by lower demand, a result of the worsening economic environment. Smartphone growth was not enough to offset the feature phones decline, despite excellent performances from Apple and Samsung. Nokia experienced another difficult quarter as a result of its transition towards Windows Phones. Feature phone shipments were near historic lows, supported primarily by very low-end devices. Overall, the Central Europe, Middle East and Africa (CEMA) markets showed strong double-digit growth due in large part to Samsung’s continued strength in the regions. Bucking its global troubles, Nokia shipments flattened out in the regions after a strong third quarter, enabling it to remain the market leader in the regions. Apple continued to make quiet progress in the regions as well.

• In North America, smartphones held the spotlight with the launch of the Apple iPhone 4S, while LTE smartphones from HTC, LG, Motorola, and Samsung also made important gains. Research In Motion launched several new phones running on BB OS 7 during the quarter, and signaled a late 2012 timetable for its first BlackBerry 10 smartphones to reach the market, leaving an opportunity to its competitors to attack its market share.

• Smartphones also took center stage in Latin America with the launch of multiple models across the region, particularly sub-$200 Android models. The low price points have enabled broader appeal, and have also found placement among popular prepaid markets. Although smartphones continued to grab attention, low-cost feature phones ruled the market, with strong participation from Nokia, Samsung, and multiple Chinese vendors.

Vendor Highlights

Nokia finished the year exactly where it began: as the undisputed leader of total mobile phone shipments. The company took another step in its storied transition, having officially launched its first Windows Phone-powered Lumia smartphones and its Asha line of smartphone-like feature phones. While both have received positive response from the market, Nokia has been quick to adjust its retail experience, customer engagement, and hardware bug fixes. At the same time, the increased focus on the Lumia, combined with changing market conditions in key markets, has prompted Nokia to change its strategy on Symbian smartphones. Fewer Symbian devices will be sold in 2012. Still, Nokia’s broad distribution around the world and manufacturing capabilities make it a serious contender to maintain its leadership position.

Samsung finished the quarter and the year reaching new record levels: breaking the 90 million unit mark for the first time in a single quarter and breaking the 300 million mark for the first time in a single year. Leading the charge for Samsung was its growing smartphone volumes, boosted by the release of several high-end devices (Galaxy S II, Galaxy Note, Galaxy Nexus), mass market models (Galaxy Ace, and Galaxy Y), and new Windows Phone smartphones (Focus Flash and the Focus S). These, along with its own steadily growing feature phone volumes, pushed Samsung closer to market leader Nokia, with fewer than 20 million units separating them in 4Q11.

Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments. That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.

LG‘s total volumes declined for the third consecutive quarter, sinking to levels not seen since the second quarter of 2007. Driving this result was a combination of waning interest in its aging feature phones and stalled smartphone volumes. In addition, from a full year perspective, LG posted the largest full year-over-year decline among the leading vendors. Still, the quarter did have some bright spots, including a return to profitability and a warm reception for its Optimus LTE smartphones across multiple markets. 2012 will feature more smartphones from LG, especially LTE-powered models, but the competition has similar smartphone strategies.

Chinese vendor ZTE nearly tied with LG for fourth place, with fewer than a million units separating the two vendors. Long known as a purveyor of entry level devices, ZTE’s smartphones increasingly moved into the spotlight. The company’s primary targets included countries throughout Asia/Pacific, but it also gained presence in EMEA and Latin America, and branched out into North America. Key models for the quarter included its popular mass-market Blade and mid-range Skate Android smartphones, and recently the company added its first Windows Phone-powered smartphone, the Tania.

Nokia Siemens Networks recently announced that it will cut as many as 1,200 jobs in Finland and lay off another 2,900 workers in Germany as it begins to restructure the company. Both Nokia and Siemens originally tried to sell the joint venture, which has struggled to report a profit, but gave up those plans this past summer. The move is expected to save €1 billion per year, Reuters said Tuesday. Nokia Siemens Networks is the second larger maker of phone network equipment in the world behind Ericsson, and the joint venture was originally created to help both Siemens and Nokia better compete on a global scale. Nokia Siemens Networks originally said that it plans to cut as many as 17,000 jobs by 2013. 

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Global smartphone vendors including Samsung, HTC, Nokia and LG are expected to launch new smartphone models in the second quarter to avoid competing directly with the iPhone 4S, according to Digitimes. “Mainly due to hot sales of the iPhone 4S, Apple recorded the largest global smartphone market share of 23.9% in the fourth quarter of 2011, followed by Samsung with 23.5% and Nokia with 12.6%,” the publication’s supply-chain sources said citing data from Strategy Analytics. “Based on previous experience, sales of iPhone 4S will remain at peak in the first quarter of 2012 and then begin to decline.” Samsung, HTC, Nokia and LG are all expected to unveil new smartphone models this year’s Mobile World Congress on February 27th, but devices supposedly won’t begin rolling out until the second quarter.

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Nokia seemingly has plans to launch a European varient of the upcoming Lumia 900 smartphone that will feature an upgraded 12-megapixel camera. Dutch online cell phone retailer Typhone.nl has posted a listing for a smartphone it says will become available in the coming months. Using an image of AT&T’s flagship Lumia model, the company lists the Nokia Lumia 910 as featuring the same solid specs as its North American counterpart with the addition of an improved 12-megapixel camera. Since initially listing the handset, the retailer has updated its Lumia 910 page to say that after contact with Nokia, the vendor could not confirm the existence of the smartphone. The fact that the device page has not been taken down, however, suggests this still was an early listing rather than an error. BGR exclusively reported earlier this month that the U.S. version of the phone, the Lumia 900, will launch on AT&T in March for just $99.99 on contract. With retailers in Europe apparently now being made aware of the Lumia 900′s European counterpart, the Lumia 910 could launch soon after.

[Via WPCentral]

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Global mobile phone shipments grew 14% annually to shatter the previous shipment record in 2011. Market research firm Strategy Analytics estimates that 1.6 billion cell phones were shipped last year, representing more than one-fifth of the world’s total population, which surpassed 7 billion in late October last year according to the Population Reference Bureau. An earlier report from the GSMA estimated that there are now more than 6 billion total mobile connections worldwide. Read on for more.

Handset shipments grew 11% to reach 445 million units globally last quarter according to Strategy Analytics, 155 million of which were smartphones. Nokia retained its No.1 position globally with mobile phone shipments totaling 113.5 million units, and Samsung followed with 95 million units. With just one smartphone line that includes just three models, Apple was the world’s No.3 cell phone vendor last quarter with shipments totaling 37 million units.

Nokia was also the top vendor for the full year, having shipped 417.1 million phones globally according to Strategy Analytics’s figures. Samsung shipped 327.4 million units in 2011 and Apple sold 93 million iPhones into distribution channels.

“Smartphone specialist Apple shipped 93.0 million handsets worldwide in 2011, nearly doubling the previous year’s volumes,” Strategy Analytics analyst Tom Kang said. “Currently in just its fifth year of participation in the handset market, Apple is on track to ship well over 100 million units during 2012. China is becoming a key market for Apple this year, and we expect Apple’s share to grow rapidly in 2012, despite countless copycat rivals.” The firm’s full press release follows below.

Strategy Analytics: Global Handset Shipments Reach 1.6 Billion Units in 2011

Boston, MA – January 26, 2012 – According to the latest research from Strategy Analytics, global handset shipments grew 11 percent annually to reach 445 million units in the fourth quarter of 2011. Apple was the star performer, capturing a record 8 percent market share worldwide during the quarter. Full-year handset shipments reached 1.6 billion units globally in 2011, with annual growth of 14 percent.

Alex Spektor, Associate Director at Strategy Analytics, said, “Despite continued macroeconomic difficulties in major markets like Western Europe, global handset shipments grew a reasonable 11 percent annually to reach 445 million units in Q4 2011. Apple was the star performer, shipping 37.0 million iPhones worldwide and capturing a highest-ever 8 percent market share. Apple’s growth was fuelled by intense demand for its refreshed iPhone 4S, as well as the availability of three generations of iPhones at a variety of price points at operators like AT&T in the United States.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Nokia’s global handset shipments declined 8 percent annually to 113.5 million units in Q4 2011. Volumes were buoyed by the sales of Nokia’s low-end dual-SIM models in emerging markets like Southeast Asia, but were a little soft overall, as initial shipments of Microsoft Lumia phones could not offset declining Symbian sales. Hot on Nokia’s heels, second-ranked Samsung captured 21 percent share with shipments of 95.0 million units. Samsung’s 18 percent annual growth was fuelled by robust shipments of its broad Galaxy-branded 3G portfolio, headlined by the Galaxy S2 superphone.”

Tom Kang, Director at Strategy Analytics, added, “Smartphone specialist Apple shipped 93.0 million handsets worldwide in 2011, nearly doubling the previous year’s volumes. Currently in just its fifth year of participation in the handset market, Apple is on track to ship well over 100 million units during 2012. China is becoming a key market for Apple this year, and we expect Apple’s share to grow rapidly in 2012, despite countless copycat rivals.”

Exhibit 1: Global Handset Vendor Shipments and Market Share in Q4 2011

[See chart above]

The full report, Global Handset Shipments Reach 445 Million Units in Q4 2011, is published by the Strategy Analytics Wireless Device Strategies (WDS) service, details of which can be found here: http://tinyurl.com/3tbnzb6.

Nokia’s fourth-quarter earnings report painted a grim picture of the Finnish phone maker’s business last quarter, but amid the red numbers peppered throughout Nokia’s earnings release, the high-level terms of its agreement with Microsoft were revealed. In exchange for royalty payments estimated to reach into the billions over the life of the agreement, Microsoft makes quarterly “platform support payments” of $250 million to Nokia according to the vendor’s earnings report. Read on for more.

“Our broad strategic agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft,” Nokia stated in a press release. “In the fourth quarter 2011, we received the first quarterly platform support payment of USD 250 million (EUR 180 million). We have a competitive software royalty structure, which includes minimum software royalty commitments. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US Dollars.”

The deal should be worth billions on Nokia’s side of the equation, and Microsoft gets a number of things in return for its payments totaling $1 billion per year. As Windows Phone struggles to gain traction while Android and iOS dominate the smartphone market, Nokia represents a huge opportunity to help put the platform in the hands of consumers. Though Nokia’s smartphones shipments are in sharp decline, the vendor still sold almost 20 million units into channels last quarter.

And Nokia’s efforts could pay off big in the U.S., a key market for Microsoft. Nokia and AT&T are preparing an aggressive attack in the U.S. with a sub-$100 flagship smartphone launch. BGR exclusively reported on Wednesday that Nokia’s sleek Lumia 900 smartphone will launch in mid-March for $99.99 on contract — a remarkable price for a brand new flagship 4G LTE phone.

Nokia also contributes development efforts to Microsoft’s mobile platform. While other Windows Phone partners simply license the software as vendors did with Windows Mobile, Nokia’s position involves software development that will help shape the core Windows Phone OS.

Microsoft’s mobile platform in more than a year old now, and its late entrance into the market has made consumer adoption quite slow. Carriers and subscribers are very focused on Android and iOS, and Microsoft had few choices beyond its current arrangement with Nokia. Whether or not the multi-billion dollar deal will pay off remains to be seen, but Nokia confirmed on Thursday that it has already shipped “well over” 1 million Windows Phones to date.

Shipment figures among Microsoft’s other mobile partners remain something of a mystery but in all likelihood, Nokia will have shipped more Windows Phones than all other Microsoft partners combined by some time later this year.

Nokia on Thursday reported earnings for the fourth quarter of 2011, revealing its third straight quarterly loss but beating analyst estimates. The company saw revenue slide 21% year-over-year to €10 billion, and profit dropped from €884 million in the fourth quarter 2010 to a €954 million operating loss last quarter. Smartphone revenue dipped 38% compared to the same quarter in 2010 to €2.75 billion, and mobile phone sales were off 23% to €3.04 billion. Nokia shipped 113.5 million feature phones, down 8%, and 19.6 million smartphones, down 31% from the same quarter a year earlier. The company said it has shipped “well over” 1 million Windows Phone-powered Lumia smartphones to date. “Overall, we are pleased with the performance of our mobile phones business, which benefited in Q4 from sequential double-digit percentage growth in our dual SIM business, with particular strength in India, Middle East and Africa and South East Asia,” Nokia CEO Stephen Elop said in a statement. “In October, we introduced the Asha 200, 201, 300 and 303, which brought new mobile phones into 76 markets around the world. We are building on this foundation with R&D investments as we continue our journey to connect the next billion to the Internet.”

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