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