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According to new reports, Microsoft is pulling in some big bucks thank to Android phone sales
Royalty payments add up for Microsoft thanks to strong Android sales

It's no secret that Microsoft's Windows Phone 7 operating system has gotten off to a slow start. Microsoft CEO Steve Ballmer has said that the smartphone operating system came to market about a year too late; hence it's facing stiff competition from seasoned competitors like Apple's iOS and Google's Android.

Currently, Windows Phone 7 is treading water with a 1.6 percent share in the global smartphone sector during Q1 2011 according to Gartner. To say that Windows Phone 7 isn't adding much to Microsoft's bottom line would be putting it mildy at this point; at least not until its partnership with Nokia kicks into full gear.

Keeping this information in mind, a Citi analyst reports that HTC is currently paying Microsoft $5 for every smartphone that it sells running Google's Android OS. The payments are a result of a patent settlement that Microsoft reached with HTC.

Horace Dediu of asymco took things a step further and reckons that HTC has shipped around 30 million Android-based smartphones. With royalty payments of $5 per device going to Microsoft, the boys from Redmond have received around $150 million thanks to sales of Android smartphones.

Microsoft claims that it has sold two million Windows Phone 7 licenses -- Dediu estimates $15 per license -- which would bring revenues from its latest smartphone operating system to $30 million. If these numbers are accurate, Microsoft is currently receiving five times as much money from Android than it is from its own smartphone OS. 

As Ballmer stated back in March 2010, there are plenty of costs involved for manufacturers when it comes to putting Android OS on smartphones.  "There's nothing free about Android," said Ballmer. "I mean at the end of the day as we certainly have asserted in a number of cases you know there's an intellectual property royalty due on that."

And HTC is just the beginning when it comes to royalty payments reports Business Insider -- Microsoft is looking for as much as $12.50 per device from other Android phone makers.



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RE: I am surprised.
By DanNeely on 5/27/2011 3:08:09 PM , Rating: 0
Me too. The fact that it has about the same market share as Android did at the same point in its life, despite being more feature incomplete, obviously means it's a total failure.


RE: I am surprised.
By Flunk on 5/27/11, Rating: 0
RE: I am surprised.
By Da W on 5/27/2011 4:02:04 PM , Rating: 2
I think this is sarcasm. Anyway WP7 has or will have many features that others don't have. And anyway, we are just CONSUMERS, why waste our time in silly dick contests? we don't make those phones!


RE: I am surprised.
By Chaser on 5/27/2011 4:48:38 PM , Rating: 1
quote:
I have an HTC HD 7 that I quite enjoy.
Glad you enjoy your phone.

Spin it as you will W7P came to the party late and compared to the well established and mature Android and iOS it has some significant feature catch up to you. Mango, hopefully gets it closer.


RE: I am surprised.
By EricMartello on 5/27/2011 7:13:39 PM , Rating: 1
Funny how these nerds feel the need to validate their choice of cell phone with fanboyism, but let's play that game...

I have a Windows Phone. It's better than iOS and Android because it is a minimalistic and efficient interface that lets you use the phone as a phone, not a wannabe PC.

Features? What features are missing that you really need? Less if more, bro. Windows Phone wasn't intended to be bloated with unnecessary features that appeal to clueless morons who shop solely by bullet-point listings. It's a smooth interface that lets you use the phone effectively and it's only going to get better from here with MS behind it.


RE: I am surprised.
By abhaxus on 5/27/2011 8:33:13 PM , Rating: 4
I hate feeding the trolls, but your post is possibly the most obvious fanboyism in the thread. By calling people who buy competitive phone OSes "clueless morons," you proved that.

I own an Epic right now, which I love customizing with community roms and my own themes etc. I love that I can overclock my phone, or undervolt/underclock it, depending on how long I plan on being away from a charger every day. I love that there are many free apps available, which is only getting better with Amazon's involvement in app sales now.

That said, I loved my Pre more, even though I never actually did any under the hood tweaking. IMO, webOS is clearly the easiest to use, and fastest multitasking mobile OS (well, now QNX has blatantly ripped it off, so maybe it's not alone anymore) :). But the lack of hardware support and developer support makes it a no-go for me anymore. I got tired of everyone else having cool apps.

The point of this, is that we all have our preferences. It's laughable to make a unilateral statement that all people who don't agree with you are 'clueless.' I'm glad you enjoy your Windows Phone, and for what it's worth, I agree, it will eventually get better. Really, Windows Phone is a peek into the future of Windows PC. And it's an exciting one.


RE: I am surprised.
By Mitch101 on 5/28/2011 12:55:24 PM , Rating: 2
With that said I purchased my phones based on knowing their limitations because app wise weather its 17K, 300K or 500K realistically I only care about 20-30 actual apps and the rest are games that are really playable on a small screen. All the real popular must have apps exist in one form or another on all 3 devices making apps number touting just stupid because most are fart and flashlights and the rest are just clones of more popular apps/games. There is no 500,000 different app categories.

I didn't buy an iPhone because of its limitations on Adobe flash, Apples denial of design flaws, the number of corporate devices we have which have already broken the glass, and since my wife has an iPod were already in disgust of how much of a POS iTunes is. I also dont like that I cant expand the memory. My sansa clip for $17.00 has a memory slot. This is the AOL of devices to me.

I bought the wife a Samsung Epic and I rather like the device it works well for her and would work well for me but I need something for a more corporate setting but I have to admit I would be happy with this device. This is a nice product and I have to say they got a lot of the interface right with a few little things that are so close to right.

I passed on a blackberry for myself as I have a corporate one and I get to test many of the newer ones and personally I think they all suck with their tiny keypads and screens to the touchscreen devices that are just horrible. The only blackberry device that has hope is the thunderbolt but thats AT&T so the service provider kills that for me.

Then there was Palm. Just kidding nothing to see here move along.

I bought my Windows Phone 7 because like Apple they have guideline to standardization so no fragmentation of apps like androids have and the security of something like the Apple store. Not that its horrible on android but I have gotten a few apps that didnt work well with the form factor.
Google is starting to do this because they realize thier devices were becoming fragmented. Im also a Visual Basic developer so I can write apps for the device but am still learning and waiting for mango because of a few items I need for development. The main reason I bought it because NOTHING will compete with Microsoft on Interfacing with Exchange and Sharepoint in the long run and I need that functionality. I would mark it down for not having a memory slot but I have the cloud and an unlimited data plan which uploads my junk to the cloud and I only need to log into my pc to download it.

I will say that Android is a better device than my Windows Phone 7 currently but if Microsoft delivers on Mango then they have competition.

If Apple continues acting like AOL thinking they know whats best for me then I will continue to pass on them. Im still not sure I will ever be able to recover from how horrendous iTunes is.


RE: I am surprised.
By Ragin69er on 5/28/2011 1:51:39 PM , Rating: 3
The real beauty of Android is its openness, I have a launcher called launcher7, which is identical aesthetically to windows phone 7. I have a music player called fede's music which is identical to the zune music player. I have a launcher called adw.launcher which I have themes to make it look exactly like an iphone, or even vanilla Android.
Android gives you the choice to make your phone experience totally different depending on how you feel that day.

I pull out the iphone theme and people have a hard time telling its not an iphone, and between the launcher and music player people really can't tell the difference between windows phone 7.

So user interface is really a win for Android no matter what, because anything any other OS does a launcher or theme will show up to allow Android users the same benefits. Although a phone without widgets is imo a time waster, as I like to check the weather, stocks, and calendar... and being able to do all of that without launching a single app is very nice.


RE: I am surprised.
By Mitch101 on 5/29/2011 11:38:45 AM , Rating: 2
True I was hoping Microsoft would have skinned the interface so you could do anything. Kind of like StarDocks WindowBlinds for Windows Phone 7 would have been and epic win for the gui.


RE: I am surprised.
By Cheesew1z69 on 5/29/2011 8:40:58 PM , Rating: 2
Huh? Thunderbolt is HTC and it's on Verizon....


RE: I am surprised.
By Mitch101 on 5/31/2011 11:20:15 AM , Rating: 2
You are correct my bad. For some reason I get a poor signal with Verizon at home. Have to stand in the back yard to get good bars.


RE: I am surprised.
By Taft12 on 5/27/2011 9:36:44 PM , Rating: 5
quote:
I have a Windows Phone. It's better than iOS and Android because it is a minimalistic and efficient interface that lets you use the phone as a phone, not a wannabe PC.


What you want is a $40 "dumbphone". A smartphone *IS* a wannabe PC. Sorry you overpaid for your phone.


RE: I am surprised.
By Flunk on 5/28/2011 11:44:34 AM , Rating: 1
That would be your opinion. I personally don't enjoy trying to do PC tasks on a 4 inch screen. My smartphone is for email, phone, surfing the web and playing phone games.


RE: I am surprised.
By Redwin on 5/28/2011 4:56:53 PM , Rating: 2
quote:
I personally don't enjoy trying to do PC tasks on a 4 inch screen. My smartphone is for email, phone, surfing the web and playing phone games.


So in your world email, games, and web surfing are not "PC tasks"? What DO you think is a PC task?? All you've done is prove his point quite effectively.


RE: I am surprised.
By SPOOFE on 5/29/2011 10:54:28 PM , Rating: 2
quote:
What DO you think is a PC task??

Spreadsheets. Powerpoint. Web editing. Video editing. Photo editing. Rendering. Transcoding. Important tasks that would be foolish to do on an easily lost/stolen/broken piece of hardware.

These are tasks that require either A: a big screen to really be productive, or B: way more computational horsepower than you can get in a small device in order to finish in any reasonable amount of time, or C: both.

What do YOU think is a PC task?


RE: I am surprised.
By Dark Legion on 5/29/2011 2:21:18 AM , Rating: 2
And some people do (quite) a bit more, which android can handle with ease.


RE: I am surprised.
By EricMartello on 5/28/2011 8:33:56 PM , Rating: 2
I could buy whatever phone I wanted...I could have more than one if I wanted. Windows Phone is the best blend hands down, and the smoothest interface of all touch-screen phones. You can't beat it.

Android lets you think it is "open" when it is not...not that it matters since none of you will ever be programming anything for it anyway, but Android is hardly as open as you think.

quote:
So in your world email, games, and web surfing are not "PC tasks"? What DO you think is a PC task?? All you've done is prove his point quite effectively.


The tasks which can be done on a PC more efficiently than they can be done on a dinky touch screen would qualify as "pc tasks", and a phone's ability to do them doesn't mean you should be seeking out a phone to use it as a primary means of performing these tasks...and what is the point of your response? Windows Phone does all of the above and more, and does it as the same or better than ios or android.


RE: I am surprised.
By snakeInTheGrass on 5/27/11, Rating: -1
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton














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