Microsoft earned 3 times the revenue from Android than from Windows Phone 7 in Q2

Microsoft earned 3 times the revenue from Android than from Windows Phone 7 in Q2
According to Asymco analyst Horace Dediu, in the first quarter of 2011 Microsoft stunningly brought in five times the revenue with Android devices compared with the cash generated by Redmond's own Windows Phone 7 OS. For the second quarter, the ratio has dropped but at 3:1 is still an ironic situation.

Dediu said in a tweet that for Q2, Microsoft received $21 million from royalties on 1.4 million Windows Phone 7 units sold from which Microsoft received a $15 license fee on each phone. At the same time, the company brought in $60 million from the sale of 12 million HTC Android phones from which it receives $5 in royalties for each unit sold. The analyst used Canalys' Windows Phone 7 sales estimates and HTC's own statement that it shipped 12.1 million handsets in Q2 (although it is not known how Dediu figured that they were all Android models).
While the amount of money involved isn't that important for a multi-billion dollar company like Microsoft, just the idea that the company's fortunes were improved more by a rival mobile OS than from the firm's own home grown software shows just how inbred the whole mobile OS business has become thanks to patents, royalties, licenses and lawsuits.

source: Twitter via BGR



1. G-Reg unregistered

Go microsoft. Paid if you buy there phone or the competition... epic win for their investors

26. jroc74

Posts: 6023; Member since: Dec 30, 2010

lol..Really. Do you think Microsoft wanna see Android killed, sued into oblivion? Me dont think so... Mo money, Mo money, Mo money..

35. kainy unregistered

Yes, if Android is dead there will be two options Microsoft and Apple ... believe me that's more money than royalties.

2. chocolatebear76

Posts: 123; Member since: Mar 03, 2011

impressive business tactics

4. Oliver unregistered

What is impressive about Microsoft making money from a company for doing nothing? It sounds like non-ethical practices to me. But most of you idiots aren't ethical anyway.

5. snowgator

Posts: 3621; Member since: Jan 19, 2011

Well, so long as you are making a solid point and not just spouting off....

7. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

This is exactly what I am talking about, Microsoft has some savvy cats working for them. They can take that free money, invest it into Windows Phone 7 & have something truly awesome. I have said it before & I will say it again WP7 IS GOING TO BE BIG! They are the new kids on the block in terms of OS, & I see them exploding in 2012 especially since Nokia is on board! WP7 is my dark horse!

8. gallitoking

Posts: 4721; Member since: May 17, 2011

WTF.. dude.. something is going to be big??.. with the new kids on the block on your dark horse.... u need therapy..sir... just kidding... I agree with you.. Windows phone will be my phone on 2015.. when they .. dont salivate SAE...

12. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

da, da.......tiss lol

15. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

No, i dont agree that WP7 will be big. One reason for that is of operator boycott (Skype). The operators hate Skype, because it steal their profits and also use alot of data. Now that MS owns skype and are planning to integrate it in WP7 i cant see the operators willingly selling WP7 phones. I think they will boycott WP7 and that it will not have more marketshare than at most 10 %. I 2013 i think the market will be like the following. Android number 1 with 30 % market share. IOS number 2/3 with 20 % market share. bada number 2/3 with 20 % market share (i personally think that Samsung is going to gradually release more and more bada phone, will they gradually release less and less Android phones, thus bada gaining alot of market share). BBOS number 4 with 10 % market share. WP7 number 5 with 10 % market share. WebOS number 6 with 5 % market share. Other with 5 % market share. MeeGo could also be quite big depending how many phones that will come with MeeGo (i hope that nokia will fire Mr. Elop and that they will return to MeeGo, in that case i think MeeGo would have a big market share). Just my guesses.

19. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Hey this is all speculation, but Microsoft is swimming in free money. If the invest into WP7 then the sky is the limit. The Mango update promises 500 NEW features, that is almost unprecedented. Nokia will makes awesome phones that will have WP7. I really think WP7 has an extremely bright future. Skype is going to be huge for Microsoft, they are going to implement it into Xbox Live & also to their WP7. I think WP7 will really take off once it has some real solid Xbox Live integration. Microsoft’s OS is intuitive, smooth & easy to use. They DO have something there! Bada has a LONG WAY to go. MeeGo from what I read is dead. WP7 has a brighter future that both of those combined. Ohh & all video chats are data hogs, they send video & voice at the same time. Skype is no different!

21. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

I know MS has load load and loads of money, but what will that help if the operators dont want to sell WP7 phones ? My personal guess is that Nokia WP7 will be a fiasco and that Mr. Elop will be fired. After that Nokia will go back to Symbian and MeeGo. You should read Tomi Ahonens blog about Nokia, very intersting read (he is a former employee of Nokia). Google "Tomi Ahonen Community dominate blog". I also think that most consumers find WP7 ugly. I did some programming for WP7 today, and i must say that i personally think WP7 is extremely ugly. Just a bunch of rectangular buttons, square tiles and text thats being showed halfway across the screen (panoramic wiew). By the way, did you know that bada right now is number 5 in terms of marketshare after Android, IOS, Symbian and BB ? And that in France, bada is number 3 with a 20 percent marketshare after Android and IOS ?

34. Striker unregistered

Dude, if you think that WP7 is ugly(!??), then what can we all say about Android? Which basically looks from the beginning like a bad copy of iOS. I have made some apps for the three os and I can tell you that WP is miles ahead. First of course is iOS, but Android is sinking...Oh and by the way, one of the most popular skins for Android is guess what...Metro style of WP. Obviously people like "ugly" after all :)

14. remixfa

Posts: 14605; Member since: Dec 19, 2008

or its because HTC got caught using MS patents and pays them royalties per phone sold. Nokia gets even more from Apple for the same reason. Heck MS owns 25% of Apple, they make a ton off of iOS devices.. lol

3. Yeeee

Posts: 190; Member since: Aug 02, 2011

its funny how htc's android phones sold 10 times more then all of microsoft's windows phones and thats not even counting motorola, samsung, and the rest.

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

Even more ironic than the fact that Microsoft is making more off of Android than W7 at this point, is that I am willing to bet that money is going straight into W7 development. So, Android is helping to fund a rival OS's improvements. Good goal for Microsoft once Tango is out: Let's shoot to make more money from our stuff in 2012 than their stuff.....

27. jroc74

Posts: 6023; Member since: Dec 30, 2010

Damn good point. Android is helping to improve WP7...yea I think Microsoft wants to see Android around a a long time..

9. Fred unregistered

Microsoft was founded upon ripping off others' technologies and claming authorship. Bill the Thrill just got rich quick enough to protect his non-ethical business practices in court. Gates is Satan, no matter how cute he chooses to protray himself in the public eye. For a real compnay (one comprised of human beings), visit

16. remixfa

Posts: 14605; Member since: Dec 19, 2008

apple? mr "i ripped off xerox" gates you mean? So ethical he gets sued for ACTUAL patent violations left and right and loses like 90% of the time? So ethical he just had to pay nokia a 7 figure lump sum + permanant royalties for patent theft? And hes such a good businessman that at one point he had Apple into the ground so much he went begging to Microsoft to buy stock and bail him out. You know MS owns like 25% of apple right? lol.

17. remixfa

Posts: 14605; Member since: Dec 19, 2008

errr.. i meant "i ripped off xerox" Jobs.. lol. Hell they both did it... lol

10. Mike S unregistered

It may be smarter business for MS to save money by abandoning its mobile unit and just let Android thrive and keep collecting Android money.

11. Fred unregistered

Agreed. I applaud the business savvy on MS's part for being in a position to sit back and collect off of others' efforts. But I don't like it (not like it matters what any of us think, really, but there it is). It goes back to what I said prior, the company was built upon that very same premise... if not all-out stealing others' work, then just clone and extend the idea a little. Come on already! I work with a few of those kind of leaches (none are billionaire tycoons, of couse), who just have everyone do their work for them and claim it as their own. I am sure some of you do too. The good news with the last scenario is that you can drag that person you work with out to the parking lot and kick his/her a** if you need to. :)

13. Heatfan316 unregistered

Damn HTC your Microsoft's bitch!

18. pissedofblakchik unregistered

Fuk all of u all of u go suk on ur moms cocks I'm drunk ass fuk listening to Britney spears so yea fuk u.

22. anon123 unregistered

^ priceless ... point proven

23. gallitoking

Posts: 4721; Member since: May 17, 2011

listen u piece of scum.... is not our fault u were drop when little and that made u the loser u are right now... but we dont have time for your nonsense....opps I did it again... jejjeje

24. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Wow, where in the world did you learn English?

20. ms-sam unregistered

Fred, you are an ignorant fool if you believe the Apple-spewing rhetoric coming from Steve Jobs hole. The products are built in sweat shops by indentured slaves that keep committing suicide, so he can get richer by over-charging for inferior hardware. Apple? Seriously? Drink your koolaid and go back to sleep while your Prius drives you to the country club. Smart business practices on Microsoft's part, and it happens all the time in business. And I wrote this on my windows phone...good day.

25. The_Miz

Posts: 1496; Member since: Apr 06, 2011

Gee, is there anyone Android DOESN'T ripoff?

28. jroc74

Posts: 6023; Member since: Dec 30, 2010 there anyone any of these companies doesnt rip off? We have seen enough lawsuit over the years to know they all have issues with other folks patents. By the way...this is about HTC...not Android. Its not about Android...yet.

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