May 29, 2011

Microsoft Earns More From Android Than It Does From Windows Phone

Now here's an interesting find ... apparently Microsoft makes more money from Android than it does from Windows Phone. This rather odd arrangement, according to Citi analyst Walter Pritchard, came about due to Microsoft's lawsuit against HTC last year. The settlement saw HTC agreeing to pay Microsoft $5 for every Android handset they shipped. With HTC having shipped some 30 million devices that's a total of $150 million heading Microsoft's way.

Compare this with the 2 million Windows Phone licenses Microsoft has sold, which are estimated to cost around $15 a pop. That's $30 million, a lot of money sure, but far from the figure received from HTC.

Microsoft are also suing other Android device manufacturers and with a precedent already set by HTC Microsoft are in with a good chance of getting similar deals from them too. That should see Microsoft's earnings from Android increase even further.

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