Microsoft gets $5 from HTC for every Android phone

Microsoft makes $5 off every HTC Android phone
Microsoft makes $5 off every HTC Android phone

Citi Analyst Walter Pritchard says Microsoft is earning a licensing fee of $5 per Android device made by HTC. This adds a bit more context to the patent agreement the two mobile giants reached last month, and according to the report, Microsoft is looking to nail other Android smartphone manufacturers with a similar agreement for $7.50 to $12.50 per device. According to the math, that means Microsoft is currently making five times more from Android than Windows Phone. Yowza.

Strategically, this is a great spot for Microsoft, since it means the more the competition scales up, the more money Microsoft has to sink into Windows Phone and getting it all caught up. Many of the manufacturers currently involved with Android are also interested in Windows Phone, and they may lean more heavily towards WP7 if they’re going to be paying Microsoft in licensing fees anyway when using Android.

As is, analysts are already pretty optimistic about the future of Windows Phone (especially with Nokia in the picture), and no doubt this continual revenue stream and the promise of tapping a few others for licensing will solidify those projections. What do you guys think – will mountains of cash be enough to make the platform a success? We’ve already seen some of the new features on the way in Mango, but none of them really blew me away.

[via BusinessInsider]

  • B-rock

    if the success of wp7 could depend on money, it would be a success a long time ago.. ms has enough money to do what they want and getting more money wouldnt make them succeed with the wp7 os…

  • B-rock

    if the success of wp7 could depend on money, it would be a success a long time ago.. ms has enough money to do what they want and getting more money wouldnt make them succeed with the wp7 os…

  • http://twitter.com/Translatethis27 Translatethis27

    MS is the son of devil…

  • http://pulse.yahoo.com/_NQAOAEBPCWGJWPIRBBPRTP4OYY Drizzle

    wp7 is initiative in many ways. pretty good!

  • TreCool

    That’s Just Wrong… Linux (The part of android that Microsoft is suing over) is developed by millions around the world putting there hard effort and time into it. Linux is obviously not stealing code from Microsoft half these people live no where near Microsoft and have never worked for them. Yet are stupid patent systems rewards rich jerks like Microsoft for not doing anything.

    I wish we could do something about this! we need to find said patents and make a final law suit once and for all making Microsoft stop suing others for using the Linux kernel!

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