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

July 6, 2011
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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

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