Microsoft gets $5 for every Android phone made by HTC and makes more money from Android than Windows Phone
According to a new report on Microsoft released by Citi, the software giant gets $5 for every HTC phone that runs on Android. The report was released by Citi analyst Walter Richard. The money that Microsoft is receiving from HTC is part of a patent settlement with HTC over intellectual property infringement.
In addition to getting $5 per HTC handset running Android, Microsoft is suing other Android manufacturers and is trying to get anywhere $7.50 to $12.50 per device. Android could end up being a big source of income for Microsoft, if things go their way.
Horace Dediu, an analyst at Asymco, believes that Microsoft has received five times more income from Android than from its own Windows Phone. Horace estimates the number of HTC devices sold with Android as the OS at 30 million compared to the 2 million Windows Phone licenses Microsoft has sold to OEMs. Those 30 million HTC phones sold equates to $150 million in Microsoft’s pockets. With each license of their Windows Phone selling for $15, revenues from Windows Phone licenses sold lock in at a low $30 million.
No wonder Microsoft is going after other Android phone manufacturers. $150 million from HTC alone..they’re going to make out like bandits if the other suits go through.