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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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Microsoft track record.
By shompa on 5/28/2011 6:12:09 AM , Rating: 0
Microsoft has not such a good track record. Majority of computer users has only experienced Windows and there fore they accept that the computer crashes a couple of time per week.

It took Microsoft almost 20 years to get an OK operation system. It was 1-2 years into XP they had their first ok working OS. Win7 in the first MS OS that have some of the features that other OS has had for 10+ years.

On mobile platforms most people have experienced other platforms then Windows. Here the consumers won't accept crashes, viruses, slow speed, non innovation GUI and outrageous pricing.

Microsoft tries to enter the mobile platform by spending billions on making Nokia produce their OS. I call this unfair competition.

Same with Google.
They bought the Android OS and give it out free. Just like MS did with Explorer who killed Netscape.

Why cant these large companies innovate them self? Why always relying on buying other companies work, copy other companies work, use unfair competition (that they will pay billions in fines over).




RE: Microsoft track record.
By TormDK on 5/29/2011 4:33:39 AM , Rating: 2
Nonsense - Microsoft is doing quite fine.

They know they are late to the mobile party, and there are quite the focus internally from Microsofts side on making it all work.

The Mango update is the proof of that. Mango, along with Nokia's brand will be stealing some markedshare from the start of new year and onwards. And thats not even mentioning the high level of integration Microsofts products and services allow for.

And you know what? Thats great for us consumers. More competition forces everyone to innovate.


"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller














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