According to a report released by Citi Analyst Walter Pritchard, Microsoft is getting USD 5 for every HTC Android device sold in the market. This money is coming from the Patent Settlement made between the two parties Microsoft and HTC under which Microsoft will get royalty payments on HTC phones running Android. Microsoft, which holds a wide range of software patents, did not say exactly what technology in the phones the agreement concerns.
The deal comes as smartphones using Google’s new operating system — which Google allows phone makers to use for free — gain in popularity. Microsoft charges handset makers like HTC and others to use its Windows phone software.
The smartphone market is riven with legal disputes as software companies and handset makers wrangle over who deserves compensation for technology behind new devices which go well beyond traditional mobile phones.
A simple math reveals that how this USD 5 is generating more money for Microsoft than all their Windows Phone sales. HTC is shipped around 30 million Android phone, which means USD 150 million for Microsoft, on the other hand Microsoft get USD 15 for the WP license from device sales and only 2 million were sold giving the company USD 30 in revenue.
150 million from Android and just 30 million from Windows Phone, that’s the reason why Microsoft is running around suing everyone.
The deal comes as smartphones using Google’s new operating system — which Google allows phone makers to use for free — gain in popularity. Microsoft charges handset makers like HTC and others to use its Windows phone software.The smartphone market is riven with legal disputes as software companies and handset makers wrangle over who deserves compensation for technology behind new devices which go well beyond traditional mobile phones.
A simple math reveals that how this USD 5 is generating more money for Microsoft than all their Windows Phone sales. HTC is shipped around 30 million Android phone, which means USD 150 million for Microsoft, on the other hand Microsoft get USD 15 for the WP license from device sales and only 2 million were sold giving the company USD 30 in revenue.
150 million from Android and just 30 million from Windows Phone, that’s the reason why Microsoft is running around suing everyone.
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