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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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By crizCraig on 5/27/2011 5:14:55 PM , Rating: 0
POLL: Should Microsoft continue to get $5 for every HTC Android phone because of their patents?

By Wiggy Mcshades on 5/27/2011 6:03:32 PM , Rating: 5

Welcome to the United States of America. Your opinion of Microsof's buisness choices aren't relevant to anyone but yourself. It's not only legal in the US to do what they are doing, but if
they didnt go after every opertunity to do so, they'd probally go bankrupt because of all the royalties they also have to pay to other companies. You have an issue with the modern patent system, not

By Ramstark on 5/27/2011 6:54:17 PM , Rating: 2
In this system, in this world and in this reality, nothing's free. All the "free systems" just balance the "closed" systems with more or less services that cost money, wanna have Android in your PC, 'kay just don't cry over the fact that noones gonna reply your "Can't connect my printer" issue on the "official" forum until someone else (and probably a few 100s more) has the same problem.

By Reclaimer77 on 5/27/2011 7:04:18 PM , Rating: 2
Are you a retard?

By snakeInTheGrass on 5/27/2011 10:29:15 PM , Rating: 2
I think you meant to say:

POLL: Are you a retard?


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