Windows announced a couple months back that all devices under 8 or 9 inches are free now. No need to pay for a license. I'll have to look up the article I read, but I'm sure a quick Google search would yield done results.
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Free Windows phone for devices < 9" Save your jokes!
This almost makes me feel like Microsoft should make it easier to convert an Android version for people that are curious to use their OS. Furthermore, it would be brilliant to help adoption rate if they give free licenses and encourage existing devices to convert to Windows in a simple easy way. Starting to see some light here.