Microsoft's Android based IP licensing revenue declines

Microsoft's Android based IP licensing revenue declines
There are a few ironies that we've discussed in the past. For example, every sale of an Android flavored DROID branded phone potentially increases the amount of money in the Steve P. Jobs' trust. The late Apple co-founder and CEO became Disney's largest stockholder when the House of Mouse purchased Pixar. And Disney bought Lucasfilm. The latter inked a deal with Verizon that allows the use of the DROID name on certain devices, in return for royalty payments.

So the bottom line after this complex series of deals, is that Disney makes more money when Verizon sells a DROID branded handset. In theory, the more DROID phones sold, the more money Disney makes. The more money Disney makes, the higher the stock rises. The higher the stock rises, the higher the value of Jobs' trust.

Another irony is that Microsoft makes more from licensing its Android patents to manufacturers than it makes by selling its Windows Phones. Almost all major Android handset producers have signed a deal with Microsoft giving them the ability to use a broad range of Microsoft's Android patents.

Microsoft told analysts during a conference call last week that its IP licensing revenue is declining. This is happening thanks to a drop in the number of Android devices being produced. Fewer devices means lower licensing revenue. Also affecting Microsoft's licensing revenue is an increasing number of low-end Android handsets. The lower the price of an Android handset, the lower the amount of the licensing fee that Microsoft gets to keep. That explains why Microsoft likes to see the major manufacturers release a large number of pricey high-end Android models.  It also explains why Microsoft's IP licensing revenue will continue to drop for the time being. And conspiracy theorists might add that this is why the marketing for the Microsoft Lumia 950 and Microsoft Lumia 950 XL is practically nothing.

source: MSPoweruser                                                                                                                                                                                    

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14 Comments

1. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Good! Every one has a piece of the Android pie.

2. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Oh boy, no one make money from Android lol

3. tech2

Posts: 3487; Member since: Oct 26, 2012

People like you bring down the IQ of the entire internet with comments like these. They make over billion from Samsung only, let alone all the remaining Android OEMs. The title reads 'revenue declines' but somehow your parroting troll peanut brain read revenue decline = 0 revenue.

9. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

You haven't been around much have you? The post was a thinly veiled jab at another user who is (in)famous for making that ridiculous comment.

10. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Dude... He was being sarcastic. Lighten up.

4. mercorp

Posts: 1045; Member since: Jan 28, 2012

Another example why no one makes money with android theory is flawed! Wonder if they will start to make Windroid anytime soon if EU succeeds in ending android monopoly.

11. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Read the news, Google and Microsoft have buried the hatchet. No more lawsuits.

6. Podrick

Posts: 1284; Member since: Aug 19, 2015

Probably beacuse of the reduction in Samsung's crappy Grand, prime, plus, ace, duos, core, value edition low ends. Jk

7. vijaysivakula

Posts: 229; Member since: Aug 17, 2011

I think we need a major course in "Sarcasm" and soon.

8. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

They have been cutting deals to preload their software, makes sense it would decline.

12. Settings

Posts: 2943; Member since: Jul 02, 2014

I dunno with all that "Another irony is that Microsoft makes more from licensing its Android patents to manufacturers than it makes by selling its Windows Phones..." statement rampant in all posts related to MS. Microsoft is primarily a software company, they care less of manufacturing than developing.

13. newuser1

Posts: 276; Member since: Dec 10, 2010

The only way Microsoft want to stay good shape in the game is bring out the surface phone now, before iPhone 7 and new Samsung flagship.

14. jroc74

Posts: 6023; Member since: Dec 30, 2010

I forgot all about Jobs and Disney...lol. That is too funny. He should have wanted the Droid line to be as popular as it was. Makes me wonder about the mentality of many of these CEOs. Then again I dont think Apple ever went after a Droid phone. Going after the Zoom was crazy enough...

16. phonearenaviewer

Posts: 48; Member since: Jan 22, 2014

Maybe, just maybe gmail push will return to ios mail app.

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