News by Dan Seifert on Friday May 27, 2011.
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Based on estimates from Citi analyst Walter Pritchard, Microsoft could be making a significantly larger amount of revenue from sales of Android phones than from its own Windows Phone platform.
Thanks to patent licensing agreements between HTC and Microsoft, the Redmond company earns money on each Android phone that HTC sells. Pritchard estimates that this amount could be $5 per phone. Even if HTC sold only 30 million Android phones per year, Microsoft could earn $150 million. HTC sold 9.7 million total handsets, on all platforms, in the first quarter of 2011.
Microsoft has stated that sales of Windows Phone licenses are in the 2 million range, and Asymco's Horace Dediu estimates the licensing fee that Microsoft receives at $15 per unit. If that estimate is accurate, that would mean that Microsoft has earned roughly $30 million from Windows Phone, a much smaller figure than the $150 million it potentially brings in from HTC's Android sales this year. The effect of this could be that Android sales subsidize Microsoft's efforts with Windows Phone, and the company benefits greatly from the success of both platforms. [via SlashGear]
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.