Mobile

Microsoft may be making 5x as much from Android as from Windows Phone

NOTE: GrowthBeat -- VentureBeat's provocative new marketing-tech event -- is a week away! We've gathered the best and brightest to explore the data, apps, and science of successful marketing. Get the full scoop here, and grab your tickets while they last.

About a year ago, Microsoft formed a patent agreement with HTC that entitled it to royalties for all HTC Android phones. Now, it appears that deal is paying off big for Microsoft.

The software giant has made five times as much from HTC’s Android phones as it has from its newly launched Windows Phones, according to calculations by Asymco’s Horace Dediu.

Dediu relied on numbers from Citi analyst Walter Pritchard, who stated that Microsoft gets $5 for every HTC Android phone made. Considering that HTC has sold around 30 million Android phones, Dediu estimates Microsoft made around $150 million through its royalty agreement with the company.

Microsoft in January said that it had sold 2 million Windows Phone 7 licenses to manufacturers, and with an estimated $15 per phone licensing fee, Dediu figures that Microsoft only made $30 million from Windows Phone last year.

However the exact numbers work out, Microsoft is definitely making a ton of money from HTC’s Android devices — and it’s not stopping there. The company is also suing other Android manufacturers, and it’s aiming to get licensing fees between $7.50 and $12.50 per phone, Pritchard said in his report.

The big takeaway here is that Microsoft is benefiting directly from Android’s success. If Microsoft manages to get similar licensing deals from other Android manufacturers, it could end up making a killing from Android’s continued growth.

“Google’s Android seems the best thing that could have happened to Microsoft’s mobile efforts, ever,” Dediu writes. Indeed.

0 comments

Trackbacks

  1. [...] Microsoft won’t be seeing nearly as much from this shakedown. We previously reported that Microsoft could have made around $150 million from its HTC licensing deal as of May — five times the amount of revenue it earned from [...]

  2. [...] Microsoft won’t be seeing nearly as much from this shakedown. We previously reported that Microsoft could have made around $150 million from its HTC licensing deal as of May — five times the amount of revenue it earned from [...]

  3. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy which seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but [...]

  4. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy which seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but [...]

  5. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy which seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but it’s [...]

  6. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy which seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but it’s [...]

  7. [...] agreements with the manufacturers of many Android phones, with the ironic result that Microsoft makes more money from Android than it does from Windows Phone [...]

  8. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy that seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but it’s [...]

  9. [...] is already paying licensing fees to Microsoft for every Android phone it sells, a strategy that seems to be paying off quite well for Microsoft. Paying out additional fees to Apple could end up being a major hit to HTC’s revenues, but it’s [...]

  10. [...] Android device, according to Florian Mueller, (which is, by the way, only twice the amount made by Microsoft on each HTC Android handset sold! – more on this later) a damages pay out structured in this [...]

  11. [...] out to be, the company does have a lot patent worries when it comes to Android. Microsoft has already made a pretty penny from its “patent agreement” with HTC, wherein the manufacturer pays Microsoft a fee for every Android phone it sells in the US. The [...]

  12. [...] out to be, the company does have a lot patent worries when it comes to Android. Microsoft has already made a pretty penny from its “patent agreement” with HTC, wherein the manufacturer pays Microsoft a fee for every Android phone it sells in the US. The [...]

  13. [...] out to be, the company does have a lot patent worries when it comes to Android. Microsoft has already made a pretty penny from its “patent agreement” with HTC, wherein the manufacturer pays Microsoft a fee for every Android phone it sells in the US. The [...]

  14. [...] out to be, a association does have a lot obvious worries when it comes to Android. Microsoft has already done a flattering penny from a “patent agreement” with HTC, wherein a manufacturer pays Microsoft a price for each Android phone it sells in a US. The program [...]

  15. [...] out to be, the company does have a lot of patent worries when it comes to Android. Microsoft has already made a pretty penny from its “patent agreement” with HTC, wherein the manufacturer pays Microsoft a fee for every Android phone it sells in the US. The [...]

  16. [...] destruction. However, they will be more than happy to tax niche players into extinction, much like HTC is paying Microsoft for each Android handset it ships. Even IBM, with its patent trove and aggressive IP monetization arm, doesn’t want to play in [...]

  17. [...] destruction. However, they will be more than happy to tax niche players into extinction, much like HTC is paying Microsoft for each Android handset it ships. Even IBM, with its patent trove and aggressive IP monetization arm, doesn’t want to play in [...]

  18. [...] has approached mobile phone manufacturers with its own patents, and some calculations suggest that Microsoft may make vastly more money from the sales of Android phones than the sales of Windows Phone 7 [...]

  19. [...] is already said to be earning as much as $150 million from its Android licensing deal with HTC, now the company will be further intertwined with [...]

  20. [...] is already said to be earning as much as $150 million from its Android licensing deal with HTC, now the company will be further intertwined with [...]

  21. [...] is already said to be earning as much as $150 million from its Android licensing deal with HTC. Now the company will be further intertwined with [...]

  22. [...] destruction. However, they will be more than happy to tax niche players into extinction, much like HTC is paying Microsoft for each Android handset it ships. Even IBM, with its patent trove and aggressive IP monetization arm, doesn’t want to play in this [...]

  23. [...] earning money for every Android device sold from its partners. Back in May, we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone, and now that figure is likely much [...]

  24. [...] earning money for every Android device sold from its partners. Back in May, we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone — now, that figure is likely much [...]

  25. [...] it’s earning money for every Android device sold from its partners. Back in May, we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone — now, that figure is likely much [...]

  26. [...] it’s earning income for each Android device sole from a partners. Back in May, we suspected that Microsoft was creation 5 times as most from a Android chartering deals than Windows Phone — now, that figure is expected most [...]

  27. [...] money for every Android device sold from its partners. Back in May, we said we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone — now, that figure is likely much [...]

  28. [...] money for every Android device sold from its partners. Back in May, we said we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone — now, that figure is likely much [...]

  29. [...] it’s earning money for every Android device sold from its partners. Back in May, we suspected that Microsoft was making five times as much from its Android licensing deals than Windows Phone — now, that figure is likely much [...]

  30. [...] May 2011, it was estimated that Microsoft was making five times as much on Android patent licensing as it was on its own line of Windows Phone 7 [...]

  31. [...] May 2011, it was estimated that Microsoft was making five times as much on Android patent licensing as it was on its own line of Windows Phone 7 [...]

  32. [...] access to Microsoft’s deep portfolio of patents.By May 2011, it was estimated that Microsoft was making five times as much on Android patent licensing as it was on its own line of Windows Phone 7 devices.Back in [...]

  33. [...] agreements with the manufacturers of many Android phones, with the ironic result that Microsoft makes more money from Android than it does from Windows Phone [...]

  34. [...] Microsoft has already been shown to make more from Android than its own Windows phones. And some kind of licensing deals will have to be done, surely, unless [...]

  35. [...] Microsoft has already been shown to make more from Android than its own Windows phones. And some kind of licensing deals will have to be done, surely, unless [...]

  36. [...] Microsoft has already been shown to make more from Android than its own Windows phones. And some kind of licensing deals will have to be done, surely, unless [...]

  37. [...] Microsoft has already been shown to make more from Android than its own Windows phones. And some kind of licensing deals will have to be done, surely, unless [...]

  38. […] Microsoft has already been shown to make more from Android than from its own Windows phones. And some kind of licensing deals will have to be done, surely, […]