Android more profitable for Microsoft than Windows Phone?

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May 27, 2024

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The title might be a bit misleading to some. Yes, the phenomena that is Google’s Android OS is going nowhere but forward and analysts predict that it will become the most used mobile OS very, very soon, but that isn’t why the OS makes Microsoft more money than its own Windows Phone OS. The truth is in the recent patent settlements: according to Citi analyst Walter Pritchard, HTC is required to pay Microsoft $5 for every Android phone sold. Further, analyst Horace Dediu estimates that HTC has sold 30 million Android smartphones to date, which adds up to $150 million in the bank for Microsoft. Dediu says that Microsoft has reported Windows Phone sales totaling 2 million licenses to date, and he estimates the company’s license fee to be $15 for a total of just $30 million.

Microsoft is also currently suing other Android phone makers for infringements on the company’s intellectual property, and is seeking between $7.50 and $12.50 per device sold. No wonder Microsoft is chasing others witht he same lawsuits, it’s a huge cash-cow for them!

[via BGR]


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