Microsoft will pocket $3.4 billion from Android this year

By on May 10, 2013, 7:00 AM

Microsoft’s troubles with Windows 8 have been widely reported but they pale in comparison to the struggles that Redmond is having with their Windows Phone mobile operating system. Along with Nokia, the two have given it their all but the fact remains… market adoption is still very low. Good thing Microsoft has an ace in its back pocket – Android.

When creating Android, Google illegally used technology from a number of tech companies including Microsoft. Rather than going through years of litigation, a number of Android vendors have already agreed to sign licensing deals with Microsoft to put the issue behind them.

It’s nothing new really as Microsoft has been earning royalties from Android since 2011. At present, more than 20 manufacturers now license IP from Microsoft including HTC, LG and Samsung.

Those licensing deals translate into serious dough for Microsoft. Most believe that Redmond will collect somewhere around $8 per Android device sold moving forward. Do the math and Microsoft is set to collect royalty fees of around $3.4 billion this year.

The good news for Microsoft is that shipments of Android handsets are showing no signs of slowing down. An estimated 1.5 billion Android-powered phones are expected to ship in 2017 and if Microsoft earned royalties on just half of those devices, they’d pocket a cool $5.9 billion. Using the same data, if Redmond collected royalties on 75 percent of devices, they’d pull in an estimated $8.8 billion in extra revenue.




User Comments: 8

Got something to say? Post a comment
Guest said:

And then, why Microsoft sues Android in Europe since it profits so much from it? Something is not right here...Like the software patents... Anyway Microsoft is surely the most disgusting tech company either it profits from an open source OS based on Linux or not...

1 person liked this | bexwhitt said:

And then, why Microsoft sues Android in Europe since it profits so much from it? Something is not right here...Like the software patents... Anyway Microsoft is surely the most disgusting tech company either it profits from an open source OS based on Linux or not...

Microsoft are just playing the broken patent game. The problem is the allowing of vague patents and being able to patent the obvious, it's all broken and should be scrapped.

Skidmarksdeluxe Skidmarksdeluxe said:

If they make so much money from Android, why do they bother with Windows 8 phone then?

wastedkill said:

If they make so much money from Android, why do they bother with Windows 8 phone then?

Because Microsoft know google will replace the current patented stuff with there own technology soon so they need a "Backup Plan" as google knows they can do better making there own technology than using patented stuff but I think they used patented stuff to speed up the process of delivering the OS and the phones.

Skidmarksdeluxe Skidmarksdeluxe said:

If they make so much money from Android, why do they bother with Windows 8 phone then?

Because Microsoft know google will replace the current patented stuff with there own technology soon so they need a "Backup Plan" as google knows they can do better making there own technology than using patented stuff but I think they used patented stuff to speed up the process of delivering the OS and the phones.

You're probably right but I think it's also a case of greed begets greed.

Guest said:

They main patent Microsoft is milking is the FAT (File Allocation Table) patent and it will expire next year.

Guest said:

God Bless America. Glad to see companies still get paid when other use their intellectual property.

PinothyJ said:

The Windows 8 platform is actually quite decent?

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.