Microsoft Profiting From Android Again: Wants $15 from Samsung Per Android Device Sold

July 6, 2011

Android is currently the most popular smartphone platform in the world, and that’s bound to create some tension amongst industry heavyweights – particularly those that aren’t what you would call “successful”. Microsoft is a clever company, and drew the ire of the blogging world not too long ago when famed industry analyst Horace Dediu called Microsoft out for profiting indirectly from Android’s success by collecting a $5 royalty from HTC for every Android phone sold.

With Microsoft’s Windows Phone 7 trailing extremely far behind, it’s obvious why Microsoft is doing this: money. Not only that, but it appears to be attempting to deter other manufacturers from hopping on the Android bandwagon by recently collaborating with Apple to purchase a slew of patents that put Android and Google in a relatively exposed position.

Anyway, if this pans out, then Microsoft is likely to profit in the hundreds of millions from sales of the Galaxy S II alone, which already stand at over 3 million devices in under two months.

HTC has already been paying Microsoft $5 for every Android handset sold, and now it looks like Microsoft is getting greedier. They apparently want $15 from Samsung per Android device sold, and considering that Samsung is now the largest Android OEM in the world, Microsoft stands to make millions.

Apparently Samsung has countered back with a $10 per phone royalty, and we don’t have any word what Microsoft’s response is yet. Somewhere, off in the distance, you can hear the sound of gold bars being placed on a marble table.

Any thoughts? Surely Microsoft won’t win any friends in the Android world, but somehow I think they don’t care.

Via: Reuters

Comments

  • Max

    Microsoft makes me sick. Clearly they are just trying to profit off Android, and stifle innovation, and coerce manufacturers into adopting their platform.

    List of evil tech companies:

    1. Apple (by a long shot, don’t even get me started)
    2. Microsoft (evil to the core, hating on open source since day one)
    3. Dell (had a ton of chances to produce some kick ass stuff and they flopped everytime)

    Haters gon’ hate.

    • 8PAQ

      You forgot about Google as #1 on the list of evil companies. Guess what Google’s product is? Gmail? Android? Nope. It’s you and me and everyone else who uses their free services or more correctly its information about all of us that Google sells to advertisers. Google customers are not web users like you and I. Their customers are advertisers and Google makes money by selling information about you.

      Say what you want able Apple and their arrogant and controlling ways, but at least they sell their products to end users and they goal is to win end users by making their experience as good as possible. Apple doesn’t sell your info to advertisers. That was the main reasons why for example publishers got angry at Apple because Apple offered end users a way to opt out from giving their personal info to publishers.

      • http://www.twitter.com/Chiraag_G Chiraag_G

        I gave up on being paranoid about my personal details, as long as they’re not selling my CC info to others and I’m getting charged for it.

        If I see more ads on Google, and the web as a whole, that are to do with things I like, such as tech, cars, watches etc – and I do – then I’m happier than non-targeted ads which might give me the latest information on Justin Bieber tickets. With those ads all around me, I might shoot myself.

  • Ray

    I think Microsoft has gone to far on this one. The Android platform is by far a better mobile operating system and the apps are awesome. I have had several windows hand held devices and they don’t hold a candle to Android 3.1. I’m still waiting for decent Print drivers. Hopefully someone will step up to the plate without fear of getting sued. The ones out there now are kinda like the commador 64 days I mean with 500,000 androids a day being activated I still have to send my files to a PC or MAC .

    • DAD

      If you have a wireless HP printer HP has an app that prints to a wireless HP printer on the network. It works great.

  • Marahan

    It would be interesting to know why open source developers have been unable to make “clean room” equivalents of whatever code Microsoft owns.

  • dEcmir

    WP7 is said to be excellent but not very popular. This is a good way to make Samsung doing better windows phone …

  • Rrpcltd

    Remember Edison and Tulsa Dc VS Ac current how Edison fought so hard and in the end Tulsa won out and we have Ac not Dc in our homes today. Microsoft VS Android I think Android is here to stay. People are getting bored with same old, same old and welcome something fresh and exciting.

    • Guest

      I think that you are talking about Nikola Tesla and not Tulsa (the second-largest city in the state of Oklahoma).