Windows Phone 7 business model

I am not sure I understand the business model Microsoft is pursuing with Windows Phone 7. Even if they sell say 10 million phones an year, and assuming say a $25 licensing fee for the OS, they only make $250 million that way which is not a big amount for MS. Sales of apps probably are not a big revenue maker either. Consider each user downloading apps worth $20 per phone MS makes $6 out of it per user giving an additional $60 million. I guess MS is hoping to sell a lot more than 10 million phones per year.

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