Portfolio Manager for ZTE UK, Santiago Sierra has revealed to TrustedReviews that the reason Windows Phones manufactured by the Chinese company will be more expensive is due to the licensing fees set by Microsoft, which he placed between £20-25 ($30-40) per license. This amount is more than what was believed, without any official fee being revealed.
We would like to believe the higher cost of the license is justified by certain features of the operating system - including Xbox LIVE, Office, and more. However, it has always been thought that licensing costs for HTC and Samsung to be between £5-10 ($10-15), but this could be due to production volume number discounts, much like what businesses may receive when purchasing multiple copies of Microsoft Office.
This cost may prevent manufacturers (like ZTE) to pump out low cost smartphones, which can be seen with the Tania pricing (almost on par with generation 1 handsets). Let's not forget that Microsoft collects royalties from manufacturers who build Android handsets, which come to around $15 per device.