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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (43066)	6/19/2011 11:53:57 PM
From: E_K_S	Respond to of 78644

This is how Microsoft earns royalties on Android devises sold by the smaller players. It's a hidden revenue stream for Microsoft. No wonder Nokia decided to work on products that use the MSFT platform. Microsoft receives $5 per HTC Android device, more income than Windows Phone May 11, 2011 winrumors.com From the article:"...Microsoft receives the money as part of a patent settlement between the two companies. Microsoft and HTC signed a patent agreement last year relating to HTC’s mobile phones running Android. Although the terms of the deal were undisclosed, Business Insider reports that the software giant receives $5 per device. Citi analyst Walter Pritchard claims that Microsoft is suing other Android manufacturers, attempting to squeeze between $7.50 and $12.50 per device out of them....". "...Microsoft has been pursuing Taiwan-based handset makers Acer and Asustek. The company is trying to muscle the vendors into agreeing a patent deal in an attempt to thawrt the spread of Android and Chrome OS. Both ASUS and Acer have been using Android on a number of devices...." -------------------------------------------------------------------- According to the article if HTC paid $5 per unit to Microsoft, that adds up to $150 million Android revenues for Microsoft. That type of royalty income begins to ad up. EKS