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Microsoft Making More Money Off The Competition (Google’s Android)

May 27, 2011 No Comments

There has been tons of excitement surrounding Windows Phone lately, Microsoft has the Mango update set to launch this fall. They also have Nokia, the top cell phone manufacturer making Windows Phones in the near future. Microsoft also recently purchased Skype, which should come into play on Windows Phone later on as well. Even analysts are going with Windows Phone as a leader in the smart phone market in a few years.

The one thing people are forgetting (and I tend to always remind them), is that Microsoft is making money off of Android devices as well. Until now though, no one knew how much it actually was. See, Microsoft and Apple have tons of clout when it comes to owning intellectual properties. Apple is even suing a few handset makers for using the Android platform since they say it infringes on a few patents.

Microsoft then decided to offer (Some might say bully but business is business) companies protection from these kind of lawsuits by letting them license the use of their patents, which just so happens to be the case with Android. To make a long story short (too late for that huh ), Microsoft gets $5 for every Android phone that HTC sells. They also have pending lawsuits vs other companies that have not taken them up on their ‘offer’.

As of right now Microsoft is roughly making 5x more on Android than Windows Phone which is just a few months old. All this just equals to good news for Windows Phone users. Manufacturers will have to pay way more to make Android phones and might decide to go the cheaper (and better) Windows Phone route.

Source: Gizmodo



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