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
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.
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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.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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