Microsoft estimated to get $444 million from Android patent deals

Microsoft estimated to get $444 million from Android patent deals
Microsoft is expected to get $444 million in Android royalties over the course of this fiscal year starting from July 1, 2011, and ending on June 30, 2012, according to an estimate by Goldman Sachs’s analyst team. For that estimate, the analysts have assumed that Redmond gets somewhere between $3 and $6 for every Android device it sells.

Update: Interestingly, it seems that Korea Times has some additional details about the Samsung-Microsoft deal over patent licensing and Samsung is expected to pay Redmond $180 million this year.

Microsoft recently sealed its biggest patent agreement with Samsung, which means that now one of the largest Android phone makers will pay the company for every handset it makes. Microsoft reportedly has also struck deals with HTC, Acer and plenty of other minor OEMs.

Now, what’s interesting is that Microsoft is said to be actually making more money from Android than from its home baked Windows Phone platform, at least for the second quarter of 2011. With the massive Mango release, things are expected to change, but even if they don’t Redmond seems to have a great source of revenue from its rival alone. 


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39 Comments

1. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

See this is why I think Windows Phone 7 will get huge. 444 million free dollars to then invest right back into WP7 to make it better is so HUGE. No company is the same position as Microsoft. Essentially Android is paying for the development of WP7. Again I have said this before & I will say it again, Microsoft & Windows Phone 7 will see an explosion with its Nokia deal & more importantly the Mango update. That is not to mention the new HTC & Samsung beast phones that will be coming out with WP7 Mango out of the box! 2012 will be huge for anyone on the Windows Phone 7 Mango bandwagon!

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

MS also makes money off of apple. Google makes money off of anyone that uses google search.. which is pretty much everyone.. lol. They all fund each other. Ok, well, Apple funds everyone else while MS and google make money off pretty much everyone.

11. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

I mean is scary that Microsoft literally makes almost half a billion dollars without even lifting a finger. That is free money they can use to make Xbox 360, & WP7 insane. It's going to be wild, the type of integration the Xbox 360 & WP7 will have in the next year or so. Microsoft really is intriguing to me at this point.

21. corps1089

Posts: 492; Member since: Jan 20, 2010

Not even mentioning the $ MS has for owning 1/3 of Apple... Bing search is on the slight uprise so advertising $ will be coming in from that...

37. Lucas777

Posts: 2137; Member since: Jan 06, 2011

i love how u say this is great microsoft is suing google but if apple does it oh no its the apocalypse.. seriously… and wp7 is my favorite so i am super happy for microsoft, but i love apple as a business… please maintain some consistency..

39. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Lucas777 if you knew anything you know that what Apple is doing IS completely different than Microsoft. For you to post such a ridiculous comment makes me question if you REALLY know what you are talking about. First do some research & then post some facts, because you just totally made yourself look like a fool. How can you speak on the subject matter if you have no clue? That is the clear definition of a person who talks BS. Why do people like Lucas777 put themselves out there to be ridiculed! So, so sorry!

2. tech-head

Posts: 133; Member since: Sep 02, 2011

News like this make me consider getting the Samsung Focus S.

18. SemperFiV12

Posts: 949; Member since: Nov 09, 2010

Beastly. I wish I was on ATT (no that was not a typo).

3. darth8ball

Posts: 520; Member since: Aug 02, 2011

I was with WP before Android and liked what the did for me as a business device. If they can combine business use with a fun personal phone, I would consider a second phone that is Mango.

5. GJanee

Posts: 214; Member since: Jun 29, 2011

haven't you tried the xbox live features? i mean they are pretty much the most fun out of all platforms (okay iOs is probably there too :D). they have brilliant graphics on a single core phone, no lags, and much much fun. at least this is my opinion of what i experienced from wp7 xbox live gaming. :)

6. Dj21o

Posts: 437; Member since: May 19, 2011

I would love to see some Samsung hardware with the WP7 Mango OS. Sprint and Verizon are getting boned, and I just bought the GSII. If Microsoft decides to upgrade some hardware, I will grab one immediately when I have a year upgrade. Until then, I will be loving every minute of this phone. :)

7. Forsaken77

Posts: 553; Member since: Jun 09, 2011

I want to know what patent is it that makes Android have to pay MS. It definately must be something software-wise.

22. corps1089

Posts: 492; Member since: Jan 20, 2010

It is patents that MS holds for software code used in linux.

8. InspectorGadget80 unregistered

M$ is nothing but GREEDY Bastards. They receive free money instead of using their own money to compete against Android and not marketing their WPM. Just makes me sick. And they should drop the law suit cause Samsung and HTC makes WP for their OS.

9. darth8ball

Posts: 520; Member since: Aug 02, 2011

MS was around long ago and payed their dues. Why are they greedy for wanting to get paid for their IP and the investment they put into it. This is how the business should work and penalties should be handed down, not banning the sales of devices. I mean if you created software that could read the users mind and enter text by thought and someone started using it on their phones wouldn't you want to be paid for each device sold that had the software on it?

15. taco50

Posts: 5506; Member since: Oct 08, 2009

Apple has been around just as long as Microsoft but you seem to have a proble with Apple protecting their ip. I feel sorry for your kids.

16. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

We are talking about mobile phones taco50. Microsoft was in the mobile business way before Apple even said, hey let's make an iPhone.

12. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

InspectorGadget80 listen to darth8ball because you couldn't be more wrong! I won't even comment on your remark. darth8ball said it very well!

23. corps1089

Posts: 492; Member since: Jan 20, 2010

Too true! MS has gone after every major linux vendor you can think of, for the most part achieving settlements where the vendors end up paying Microsoft for what may or may not be actionable IP violations. now that linux is used for Android and Android makes $ even though it is given away for free, MS is claiming the same rewards from their piece of the pie that made Android possible through linux.

10. surya_020 unregistered

Hahaha LOL look at the pic of Steve....nice one Phonearena... WP7 mango is good..but need some good hardware...to compete with SGS2 and Nexus Prime..Hope MS will reconsider that .....

13. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

You are 100% right, those phones are coming. 2012 will be a big year for Microsoft. They are planning some stunning things with the integration of the Xbox 360 & Windows Phone 7. They will need VERY powerful phones to make that a reality. Bottom line, it WILL happen! On Nov. 15th the Xbox 360 will get a new dash board & it's going to resemble WP7 Mango.

14. taco50

Posts: 5506; Member since: Oct 08, 2009

Interesting fandroids are ok with Microsoft suing everyone left and right but freak out when Apple does it. It stinks of hypocrisy in here ( business as usual for fandroids)

17. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

taco50 you really are going to say that? You think Microsoft is doing what Apple is doing? Dude get a clue, you are so not well informed. I don't even want to waste my time explaining the differences between what Microsoft (who owns part of Apple) & Apple are doing. Poor poor taco50, I am sure someone here will make you see the error of your ways. I really just don't want to do it today! I am so tired, I had a late night last night! :-(

19. taz89

Posts: 2014; Member since: May 03, 2011

well microsoft unlike apple are not trying to ban products based on vague drawings and microsoft is not trying to take choice away from customers.

27. 530gemini

Posts: 2198; Member since: Sep 09, 2010

@taz. And how did Apple take away consumers' right to choose? When you own an IP, and someone else wants to use it, it's either you license them to use it, or you don't. MS chose to let their IP's be licensed so they can make more money, Apple does not because they value their exclusivity. How does that take away your freedom of choice? I swear. Android fanboys have the most distorted mentalities.

28. Penny

Posts: 1859; Member since: Feb 04, 2011

Gemini. You answered your own question in your own comment. If you are choosing to use your patents to enforce exclusivity, by definition you are trying to be the only option.

32. 530gemini

Posts: 2198; Member since: Sep 09, 2010

@penny. And you have the right to own exclusive rights to anything that you own. As for consumers. They have the choice to buy Apple products or something else. So the choice is still there.

35. remixfa

Posts: 14605; Member since: Dec 19, 2008

can you find me the filing that says apple owns the exclusive rights on certain colored icons and large home buttons (even though samsung used that years before the iphone launched). If not, you dont have a point. Apple isnt suing to protect patented IP, MS on the other hand is.

20. Penny

Posts: 1859; Member since: Feb 04, 2011

Taco, as others have alluded to, there is a drastic difference in the way Microsoft and Apple are dealing with these situations. Microsoft is going directly to the manufacturers and asking them to pay a fair and reasonable licensing fee for the patents that Android is treading on. That is not suing, that is structuring a licensing deal. Apple is not asking to be paid licensing fees; they are taking these manufacturers to foreign courts where it is easier for them to win and asking for a straight out BAN on their products. Basically, Microsoft is using its patents to get royalties, which is the way it should work. Apple is trying to stifle competition, which is not healthy for any market. Big big difference. Moreover, the fact that Microsoft has gotten such large mobile manufacturers on board so easily indicates that the patents Microsoft holds probably have some serious validity (read: technical specifications), unlike the UI and design patents that Apple is presenting in court.

29. 530gemini

Posts: 2198; Member since: Sep 09, 2010

@penny. To each his own. Are you saying that because Apple wants to keep their IP's exclusively Apple, that it's wrong? Are you saying that every company should licence their IP's to everyone and that they don't have the right to keep it exclusive? Apple did not sue anyone just because they were bored. They sued because their IP's have been violated one way or another. Apple wants exclusivity. How can they attain that exclusive image if they license their IP's to everyone? Is android exclusive to one OEM? No. Is WinMo exclusive to one OEM? No. Is iOS exclusive to one OEM. Yes. Do you know what being exclusive means? Do you know how a company can keep its exclusivity? Apple is merely protecting their IP's. Is that wrong? You think it's wrong because you want it on your android phone as well and you're upset that Apple will not allow it. That's what's wrong :)

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