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The analysts at Goldman Sachs have crunched some numbers following the recent licensing deal between Microsoft and Samsung and projects the computer software giant will receive some $444 million in fees from Android manufacturers this fiscal year. The firm concluded that Microsoft receives a $3-$6 cut on every device sold by companies including HTC among others. It is unclear if Microsoft still stands to earn more on Android than they do through sales of their own Windows Phone 7 platform, but the $444 million they will take in amounts to mere chump change compared to expected revenues of $75 billion.
[via BusinessInsider]
This is the sad move of what others would call a company that was in danger of going out of business but we all know that isn’t true so then this just makes M$ look like douche bags.
No, no it doesn’t. Microsoft has intellectual property that it worked on and patented; and it is obviously valuable, or all the major Android phone manufacturers would not be licensing it. This is business. You and all the others who use ridiculous “M$” phrasing and call making smart business decisions a “douchebag” move just bring down the level of discourse and, frankly, make you look like children.
Good one sir but even though I use all tech I will continue to use the “M$” phrase when it is called for.
Edit: Also welcome to Phandroid.com
Fair enough; and thanks for the welcome!
I think the “MBA mindset” is something that the world would be better off without.
Your choice of picture is win.
I literally laughed out loud when I saw it…lol. And the first thing I looked for in this article was a post about the picture…
What an awful picture.
“It is unclear if Microsoft still stands to earn more on Android than they do through sales of their own Windows Phone 7 platform”
Why is it unclear? I doubt MS is even making a profit from WP7, let alone $444 mil.
At this moment Microsoft makes 5 times more money from Android than WP7 and now with this deal even more.
I doubt the validity of these numbers. We still don’t know what the licensing fees are or what they are for. More than likely, the Goldman tech team is just doing what it’s paid to do: drumming up tech stock interest through market news/speculation.
what patents did android infringing? why apple doesnt get this trouble?
Apple & Microsoft have a long standing patent cross-licensing agreement.
And I have a feeling that will be a team up to fight the giant Android.
Microsoft has made allegations that the Linux kernel infringes on their patents.
This is probably what they are telling these companies and essentially going after the low hanging fruit.
If they said the Linux kernel was the reason for these deals then they would be sued immediately.
This way they get cash, and they don’t get sued.
I hate Microsoft and Apple… I have my reasons, and the fact that our patent system is so messed up that companies can make money off of others hard work is crazy. It’s not as if Actual Code or parts were stolen from them. Want to hear a company that got taken out by Microsoft after Microsoft stole the companies software? Read up on Stacker Software.
Crooks
I don’t hate MS but I sure do hate the Patent System. I understand it but sometimes there are things that become so generic that the patents should no longer be valid. “Methods for mobile devices communicating with the internet”. Really? Your device either doesn’t communicate with the internet (and wont sell) or you get F’d in the A by that patent.
(I dont know if thats a real patent or not but there are some that are similar and worded like that, but you get my point)
I use to like Microsoft.
I used to like Microsoft also, back in about 1979.
By 1987 it was beyond clear that Microsoft was pure evil.
1) Nice picture choice.
2) Microsoft had to make money from handset manufacturers somehow. It sure was not going to be from WP7
3) That $444 million is pure profit. How much of that $75 billion in revenue will actually be profit?
reminds me of when microsoft took apple’s idea and patented it, making them what they are now.
The “idea” that they both stole from Xerox?
Is that about $1/unit sold? If their low-value licensing arrangement is $5/unit w/HTC, and the high one is around $12/unit (was this rumor tied to Samsung?), MS is leaving a lot on the table so far.
How much is recoverable from ZTE and Huawei?
Apple you could learn a few things from Microsoft. If you can beat’em leach off them!
Pay For Android ??? I don’t think so, it is just FUD
Android is free, if MS have any issue with patents for Linux or Android thay sould sue Google or Linus, otherwise we don’t know what patent company pay for :)
see:http://www.zdnet.com/blog/open-source/microsofts-samsung-android-patent-troll-win/9634
Since Goole provides the OS for free, they can’t make any real money by suing them directly. As with most OSS dispute, they go after companies making money directly from the use of the OS.
Google is the only large defender of Linux it seems. I’m ready for the patent throwdown once the Motorola acquisition is complete. Motorola OWNS mobile patents.
Oh my gosh. Ballmer looks just like Kevin from the office!
These figures don’t have real meaning as we have no other figures to compare to and I am pretty sure part of the deal is that Samsung either doesn’t have to pay much for Microsoft’s mobile operating system, I would even go as far as saying Microsoft made sure that these competitors back WP7 in some form or fashion.
But that would be bad publicity, hence the NDA’s
So what grounds are they actually collecting on? I will reserve passing judgement as this article really gives no specifics.
Picture says it all. Nice innovation M$.