Published May 27, 2011
According to a report by Citi analyst Walter Pritchard, Microsoft may be making more money off Google’s Android operating system than it makes off its own Windows Phone platform — five times more, in fact.
Pritchard states that as a result of a patent settlement, HTC is required to pay Microsoft $5 for every Android phone sold.
Analyst Horace Dediu estimates that HTC has sold 30 million Android smartphones to date, which adds up to $150 million in the bank for Microsoft. Dediu notes that Microsoft has reported Windows Phone sales totaling 2 million licenses to date, and he estimates the company’s license fee to be $15 for a total of just $30 million.
Pritchart notes that Microsoft is currently suing other Android phone makers for infringements on the company’s intellectual property, and is seeking between $7.50 and $12.50 per device sold. As much money as the company is making on sales of HTC’s Android phones, it’s easy to see why Microsoft is pursuing other cell phone makers with similar suits.
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