Tuesday, August 7, 2012

Microsoft will collect $ 800 million royalty from Android this quarter

The cross-licensing agreements that Microsoft signed with the major phone manufacturers and other companies earn more than $ 800 million per quarter, which is reinvested to fund the losses of Windows Phone and other projects.

Microsoft earns more than $ 800 million with royalties from phone manufacturers , so even if the operating system Windows Phone has a negligible market share for now the Redmond company is among those who earn more from sales of smartphones.

The latest estimate by analyst Trefis , who calculated that only Samsung and HTC, two biggest producers of Android smarphone have paid about 792 million dollars to Microsoft  just in the second quarter of 2012. The figure is calculated as a function of the number of units sold, so the 52 million smartphones by Samsung placed in the second quarter helped to weigh down the bags of Microsoft as well as those of the South Korean manufacturer. The company, according to estimates, should be acknowledged at Microsoft between $12 and $13 for each device sold.
HTC has experienced a slump in sales last quarter thus contributing less to stuff the coffers of Microsoft, but keep in mind that according to analysts Trefis Microsoft pays ten dollars for each Android device sold .
In essence, given the figures from Canalys this week that give the sales of Windows Phone with 5.1 million units , it is easy to see that Redmond earn more from sales of android than from its mobile os.
According to the calculation of the Trefis licensing program, started in 2003, has already led to the signing of more than 1100 license agreements and helped to subsidize the losses of products like the Xbox (before the announcement of Kinect) and Windows Phone precisely.
Far fruitful intellectual property so it seems only one way to get rich at the expense of others, but a self-financing system, which should increase innovation in the enterprise.

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