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Microsoft could earn $8.8 billion from Android licenses by 2017

Posted: , by Alan F.

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Microsoft could earn $8.8 billion from Android licenses by 2017
We recently told you about licensing deals that Microsoft worked out with both Hon Hai and ZTE. The deals revolved around patents owned by the Redmond based company for Android related technology. According to a report from researcher Trefis, during just one quarter last year Microsoft brought in $790 million from its Android patents for HTC and Samsung devices alone. With Gartner now projecting the annual production of 1.5 billion Android models by 2017, it looks like no one will be needing to pass a hat around for Microsoft.

Getting paid for 50% of all Android devices sold, Microsoft could earn $5.9 billion from its Android patents by 2017

Getting paid for 50% of all Android devices sold, Microsoft could earn $5.9 billion from its Android patents by 2017

Before we look into just how much money could be coming into Microsoft's coffers annually, let's look at some of the things on Android protected by a Microsoft patent. The faster loading of web pages without images, the technology that keep mobile apps up to date about the device they are installed on, and the Exchange ActiveSync capabilities (which lets you sync calendars, email and documents from desktop to mobile) are all functions of Android devices that are covered by Microsoft patents.

According to Gartner, if Microsoft receives $1 for 50% of each Android device sold, it would receive $430 million this year. On the other hand, if the tech giant receives $8 per device, the number jumps to $3.4 billion. By 2017, if the percentages remain the same, Microsoft could be bringing in $5.9 billion and that figure jumps to $8.8 billion if the software giant can get paid for 75% of Android phones sold by then. That isn't terribly far-fetched considering that Microsoft says that its licensees account for about 80% of devices powered by Android's open source OS.

With this kind of money coming in from Android flavored phone sales without lifting a finger, it makes you wonder why Microsoft is trying so hard to get the owners of such phones to switch to Windows Phone.

source: DigitalTrends via WMPoweruser

33 Comments
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posted on 01 May 2013, 10:02 7

1. alterecho (Posts: 1072; Member since: 23 Feb 2012)


looks like its a win win situation for MS, whether wp8 gains market or not. How come Apple seems untouched by MS? Is it because of some kind of cross licensing deal they had?

posted on 01 May 2013, 10:07 8

2. hung2900 (Posts: 776; Member since: 02 Mar 2012)


Yes, they have cross licensing deal. That's why the bounce-back feature has been available on WP since it was born without any lawsuit from Apple.

posted on 01 May 2013, 14:48 2

19. Cod3rror (Posts: 58; Member since: 06 Apr 2013)


I wish Android had the bounce-back feature. It's awesome.

posted on 01 May 2013, 18:02 2

24. puckhead (Posts: 76; Member since: 13 Jan 2013)


exactly, its probably also why google cant add certain no-brainer features that iOS has... I seen ppl be like, "iOS does this why doesnt android do it?"

posted on 01 May 2013, 10:08 3

3. jacko1977 (Posts: 388; Member since: 11 Feb 2012)


first

god damn it

posted on 01 May 2013, 10:22 6

6. xperiaDROID (Posts: 5209; Member since: 08 Mar 2013)


You came here just to be the first one to post a comment? :)

posted on 01 May 2013, 10:16 2

4. cabuya (Posts: 24; Member since: 16 Jul 2012)


Thas why phone are so damn spensive

posted on 01 May 2013, 11:53

16. InspectorGadget80 (Posts: 6230; Member since: 26 Mar 2011)


Why can u learn how too spell?

posted on 01 May 2013, 12:06 16

17. Ihateapplemorethanyou (Posts: 2; Member since: 17 Nov 2012)


Not sure if you're trolling or equally illiterate

posted on 01 May 2013, 10:18 3

5. Emily1985 (Posts: 123; Member since: 08 Nov 2012)


"it makes you wonder why Microsoft is trying so hard to get the owners of such phones to switch to Windows Phone."

Why take $ 8 from Android that you can take $ 50 for WP ;)

posted on 01 May 2013, 11:29 3

13. Gdrye (Posts: 101; Member since: 02 Jan 2012)


WP will never overtake android, i think blackberry has a better chance of that, if it happens, which neither will. so the $50 off WP means nothing compared to the $8 of android. would you take $50 a day or $8 an hour for 24 hours?

posted on 01 May 2013, 20:44

29. marioellobo (Posts: 44; Member since: 20 Mar 2013)


they shouldn't android is making more money for them than the windows phone very baaaad nokia.

posted on 01 May 2013, 10:23 5

7. anywherehome (Posts: 971; Member since: 13 Dec 2011)


Fight against rotten, blackmailing, corrupting Microsoft! Don't give up easily, cowards!

posted on 01 May 2013, 10:30 2

8. Aeires (unregistered)


Finally a chart. Knew all along it was never $15 per handset that so many people commented about. Still a big chunk of money but I'm sure it's worth it to Google to have that many phones active.

posted on 01 May 2013, 10:45 1

9. lee480 (Posts: 172; Member since: 24 Sep 2012)


Haha Microsoft cannot sue Sony or they can kiss their Xbox goodbye :)

posted on 01 May 2013, 10:56 3

10. Shaznek (Posts: 43; Member since: 18 Apr 2013)


Maybe we ll even see microsoft making android hardware in the near future!

posted on 01 May 2013, 18:26 2

25. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Yea and tell ELOP to start peeing in pocket to feel the warmth :D

posted on 01 May 2013, 11:09 7

11. SleepingOz (unregistered)


I guess they make more money with Android than their own WP.

posted on 01 May 2013, 11:22 4

12. darac (Posts: 2156; Member since: 17 Oct 2011)


Lol

So Android will be one of Microsoft's greatest sources of income.
Lucky bastards.. they will keep on doing nothing and money will still keep pouring in

posted on 01 May 2013, 16:01

23. serporys (Posts: 16; Member since: 20 Apr 2013)


Only until the patents expire, which shouldn't take much longer. The FAT patent is pretty old, and should be a FRAND patent at this point anyway, not one for which Microsoft can charge as much as they want for it. It was a failure of the anti-trust committee for not requiring them to make it FRAND before.

posted on 01 May 2013, 11:47 5

14. mgonzalez (Posts: 21; Member since: 12 Jun 2011)


Biggest patent troll ever!

posted on 01 May 2013, 11:52 4

15. InspectorGadget80 (Posts: 6230; Member since: 26 Mar 2011)


M$ bunch of greedy turds. They dont want too at least try too compete with or against android. They are just as bad as apple

posted on 01 May 2013, 14:12 2

18. papss (unregistered)


What? They don't want to try and compete? You are completely ridiculous with that comment

posted on 01 May 2013, 14:50 5

20. daysleft (Posts: 8; Member since: 27 Nov 2012)


I don't understand why everyone is bashing microsoft for this and saying they are greedy or patent trolls. It seems to me that they came to an agreement with google/android over the use of certain functions in their OS. This isn't really greedy, it's more like smart.

posted on 01 May 2013, 16:00

22. serporys (Posts: 16; Member since: 20 Apr 2013)


An agreement such as "pay us if we don't want your shop to burn down".

Typical mob tactic.

posted on 01 May 2013, 20:59

30. MartyK (Posts: 697; Member since: 11 Apr 2012)


Daysleft,

The problem is when anyone goes after MS for patents violation, they run and get their pay for judges to overturn their loss ..(IE western US DJ)..

http://news.yahoo.com/latest-patent-setback-google-seen-nothing-heartbreak-motorola-035936183.html

posted on 01 May 2013, 15:59

21. serporys (Posts: 16; Member since: 20 Apr 2013)


And then their patents will expire....

Enjoy it while it lasts Microsoft, but if WP8 doesn't catch on in the mobile market, these limited term royalties won't save you.

posted on 01 May 2013, 19:30 1

26. Zero0 (Posts: 583; Member since: 05 Jul 2012)


Waitwaitwait.

Microsoft has a patent on loading web pages without displaying the pictures?

This is insane. I've said it about ten thousand times, but the patent system in this country is broken. Fix it.

This post patent pending.

posted on 01 May 2013, 20:01

27. papss (unregistered)


Anther thing that is broke is privacy laws...cough Google cough... Big brother anyone?

posted on 01 May 2013, 20:41

28. marioellobo (Posts: 44; Member since: 20 Mar 2013)


by rather give some money to microsoft i rather change to tizen or firefox os don't like microsoft or apple.

posted on 01 May 2013, 21:44

31. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


At what point does MS just give up on WP and just make money on Android? Isnt this a double edge sword for MS? If they get ppl to switch from Android...no more revenue from Android.

If ppl keep choosing Android....less users for WP but more money for MS. Get rid of WP and they can do basically nothing and sit back and collect the paychecks.

Its a win/win but its also a catch 22.....

posted on 02 May 2013, 02:05

33. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


In 5 years, Microsoft could be giving Oracle and Virnet X a run for their money in the revenue-through-licensing-and-lawsuits game.

posted on 02 May 2013, 02:03

32. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


Are these FRAND licenses? I'm not sure how in this digital and networked world that we live in that this patent isn't governed under FRAND by now. Syncing just seems a little too ubiquitous now.

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