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Microsoft will make $444 million this year in Android licensing fees

Written by Andre Yoskowitz (Google+) @ 29 Sep 2011 23:03 User comments (5)

Microsoft will make $444 million this year in Android licensing fees Microsoft will bring in an estimated $444 million this year from extorting Android manufacturers, says Goldman Sachs, bringing in $3-6 per mobile device sold.
Android has a 40 percent global market share, while Microsoft's own Windows Phone 7 is only expected to take 4 percent.

For now, manufacturers pay $11 to license Windows Phone 7 so Microsoft will make significantly less money from their own platform than they will from Android, which they had no part in creating.

Continues the Goldman analyst:

Despite the royalties Microsoft is demanding for alleged patent infringement, we see its legal battles as playing a lesser role in its overall mobile strategy as compared to its desire to strengthen the ecosystem for Windows Phone going forward.


HTC pays Microsoft $5 per device, and Velocity Micro, General Dynamics Itronix, Wistron, Acer, ViewSonic and Samsung have all signed similar licensing deals.

Microsoft is the only notable hold out in the Android camp.

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5 user comments

130.9.2011 9:37

I'll say this, MS was smart, cause even should their Windows phone utterly fail, they still have guaranteed royalties coming in to cover the lost.

230.9.2011 10:55

Yea but I think they're probably turning off possible Windows Phone manufacturers with this, no? No one really wants to push a platform made by people they perceive to be crooks, I would think lol


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330.9.2011 12:02

I'll gladly pay the $5 out of pocket as long as I don't have to have Microsoft or Apple on my device!

Seems the iPhone company and Micro$haft can only compete with the help of our corrupt judicial and broken patent systems.

This message has been edited since its posting. Latest edit was made on 30 Sep 2011 @ 12:03

430.9.2011 12:25

Quote:
Yea but I think they're probably turning off possible Windows Phone manufacturers with this, no? No one really wants to push a platform made by people they perceive to be crooks, I would think lol
I don't think it's so much that as it is manufacturers want to create phones where there is a market. Samsung does very well for Droid phones, the best so far really; why saturate it by making Windows phones that have yet to truly penetrate the cell market? By doing so the companies run risk of losing $ out of their pocket if these phones don't sell.

It's why MS tried so hard to get Nokia to sign on, because their OS is dieing out thanks to Droid and iOS. Personally I think Nokia should make Droid if they haven't already, but I can see why they don't want to join the others so easily if it turns out the MS can truly make a smart phone OS that interfaces with Windows in a smart, easy to understand way.

MS does have some unique interesting ideas for bringing technology together, the issue is will it work? the idea of making XBL access to their smart phones and Windows 8 is good. The idea of having smartphones in conjunction with with PC and 360 is also nice. But what I hate *and I sure others agree* is how MS tries to keep everything in the MS circle of things as Apple does.

523.2.2012 20:47

Originally posted by Shifty_1:
I'll gladly pay the $5 out of pocket as long as I don't have to have Microsoft or Apple on my device!

Seems the iPhone company and Micro$haft can only compete with the help of our corrupt judicial and broken patent systems.
Yeah, if you can't innovate, regulate!

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