Print 33 comment(s) - last by Mitch101.. on May 31 at 11:20 AM

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 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.

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