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Microsoft makes More Money from Android Phones than from Windows Phones

New report says Microsoft gets $5 per Android Phone sold by HTC.

May 27 2011, 10:05am CDT | by

Microsoft makes More Money from Android Phones than from Windows Phones
 
 
 

A new interesting information got exposed by Citi Analyst Walter Pritchard. According to Business Insider. Mr Pritchard unveiled in a Microsoft report today that the company earns $5 for each Android phone sold by HTC. This fee is part of a patent settlement deal Microsoft reached with HTC.

Market Research firm asymco estimates that HTC sold 30 million Android phones thus owing Microsoft $150 million.  So far about 2 million Windows Phones have sold. If you put a $15 license fee on each Windows Phone than Microsoft made only $30 million from Windows Phones. Android Phones earned Microsoft 5 times more. And this is just from HTC. Microsoft is seeking more patent settlement deals with other Android phone makers.

Microsoft strategy could pay off two ways. It makes them money and at the same time makes Android less interesting for mobile device makers as margins dwindle.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr (Google) is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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