Microsoft could earn $8.8 billion from Android licenses by 2017

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.

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



1. alterecho

Posts: 1106; Member since: Feb 23, 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?

2. hung2900

Posts: 966; Member since: Mar 02, 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.

19. Cod3rror

Posts: 142; Member since: Apr 06, 2013

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

24. puckhead

Posts: 81; Member since: Jan 13, 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?"

3. jacko1977

Posts: 428; Member since: Feb 11, 2012

first god damn it

6. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

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

4. cabuya

Posts: 41; Member since: Jul 16, 2012

Thas why phone are so damn spensive

16. InspectorGadget80 unregistered

Why can u learn how too spell?

17. Ihateapplemorethanyou

Posts: 2; Member since: Nov 17, 2012

Not sure if you're trolling or equally illiterate

5. Emily1985

Posts: 127; Member since: Nov 08, 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 ;)

13. Gdrye

Posts: 111; Member since: Jan 02, 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?

29. marioellobo

Posts: 44; Member since: Mar 20, 2013

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

7. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

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.

9. lee480 unregistered

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

10. Shaznek

Posts: 43; Member since: Apr 18, 2013

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

25. rusticguy

Posts: 2828; Member since: Aug 11, 2012

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

11. SleepingOz unregistered

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

12. darac

Posts: 2156; Member since: Oct 17, 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

23. serporys

Posts: 16; Member since: Apr 20, 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.

14. mgonzalez

Posts: 23; Member since: Jun 12, 2011

Biggest patent troll ever!

15. InspectorGadget80 unregistered

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

18. papss unregistered

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

20. daysleft

Posts: 8; Member since: Nov 27, 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.

22. serporys

Posts: 16; Member since: Apr 20, 2013

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

30. MartyK

Posts: 1043; Member since: Apr 11, 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)..

21. serporys

Posts: 16; Member since: Apr 20, 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.

26. Zero0

Posts: 592; Member since: Jul 05, 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.

27. papss unregistered

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

28. marioellobo

Posts: 44; Member since: Mar 20, 2013

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

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