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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 Taft12 on 5/27/2011 9:36:44 PM , Rating: 5
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
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
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.

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.

"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

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