According to some reports, HTC pays $5 to Microsoft for each Android device they sells. Walter Pritchard released a report this morning in which he claims that Microsoft, best known for its Microsoft Windows operating system and the Microsoft Office suite, receives $5 per device.
HTC Corporation, founded in 1997, produces the Android and Windows Mobile based smartphones. HTC launched their first device back in 2006 and now they have dozens of products around the world; recently they announced that the HTC Diamond will overcome iPhone market hold.
According to Business Inside, Walter Pritchard who is analyst of Citigroup released a report in which he disclosed that HTC adds $5 to Microsoft’s account on every sale of Android device by HTC. He added that so far HTC had sold 30 millions Android sets and added $150 million of worth in Microsoft’s wealth. Well, this is not over, Microsoft is suing other Android manufacturers too, to seek $7.50 and $12.50 per device.
We know that Microsoft products failed so many times against Android and they are furious on Android popularity as they consider that Android and other-Linux based operating systems are against their intellectual property.
“We have also consistently taken a proactive approach to licensing to resolve IP infringement by other companies and have been talking with several device manufacturers to address our concerns relative to the Android mobile platform,” Horacio Gutierrez, Microsoft’s deputy general counsel, told CNet. Microsoft already sued Android handset maker Motorola Mobility in October and the reason was the the use of Google’s Android platform. In April 2009 Oracle also sued Google over Android, as Google used Java Code in Android.
Last year Steve Ballmer said that “Android has a patent fee. It’s not like it’s free. You do have to license patents. HTC’s signed a license with us and you’re going to see license fees clearly for Android as well as for Windows”. So far no one knows the amount of patent fee.
Recently Microsoft giving a huge amount of money for the development of Windows Phone 7, but they are receiving five times more income from Android than their very own Windows Phone.
According to the Microsoft they sold 2 million Windows Phone licenses and made $30 million in revenue as license fee of each Windows Phone is $15, On the other hand Microsoft made $150 million because of HTC.
It is crystal clear that Microsoft generating 5 times more revenue than their own Windows Phone and it is only because of Microsoft’s lawyers, not its designers and engineers. According to the analyst Microsoft not only making a good amount of money from this deal but also representing Windows Phone as more attractive and original than Android.
Have a look on chart of lawsuits around Android: