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

Andre Yoskowitz
29 Sep 2011 23:03

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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