Microsoft Makes $5 for Every HTC Android Device Sold

Citi analyst Walter Pritchard says that Microsoft is getting $5 for every Android device sold that is made by HTC. This is because Microsoft sued HTC, claiming that their Sense UI infringed on various patents, and HTC settled, agreeing to pay a certain amount of money for every Android device sold to the consumer.

More interesting, though, are the calculations that Horace Dediu of whipped up: he claims that, if these numbers are correct, Microsoft has made approximately five times more money on Android than by shipping their own Windows Phone 7 mobile operating system.

A rough estimate of the number of HTC Android devices shipped is 30 million. If HTC paid $5 per unit to Microsoft, that adds up to $150 million Android revenues for Microsoft.

Microsoft has admitted selling 2 million Windows Phone licenses (though not devices.) Estimating that the license fee is $15/WP phone, that makes Windows Phone revenues to date $30 million.

So Microsoft has received five times more income from Android than from Windows Phone.

Crazy how that works, isn’t it? Microsoft has also sued other Android phone¬†manufacturers¬†(like Motorola) over the same, or similar, patents. Pritchard states that Microsoft is looking for $7.50 to $12.50 per device sold, if they reach a settlement or win the case. You can quickly see how Microsoft could start racking up a lot of money on Android devices, especially if the continue to sell so well.

[Business Insider]

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