Tuesday, May 31, 2011

Microsoft touch $ 5 on each Android HTC sold

Walter Pritchard, an analyst at Citi cited by Business Insider, has released a report that caused a stir. He claims that Microsoft receives $ 5 for each HTC Android sold because of a settlement agreement in a patent infringement case the opponent in Redmond. Microsoft had confirmed in April 2010 that it had struck a deal with HTC, but the terms were unknown.

Dediu Horace, an analyst for Asymco relied on the report of his colleague to calculate that Microsoft had already received 150 million dollars from HTC Android for smartphones sold. By comparison, Mr. Redmond believes that Dediu receives $ 15 per phone Windows phone sold by the manufacturer and the publisher have pocketed $ 30 million.

Microsoft has won five times more money with Android HTC devices with those embarking Windows phone. The author concludes that "Google's Android seems to be the best thing that could happen to Microsoft's mobile efforts." Indeed, it is likely that Nokia will also pay a license to the firm of Steve Ballmer for each Android phone sold, since the agreement signed between the two (see "Microsoft gives $ 1 billion to Nokia").

This, at least comical, allows Microsoft to take advantage of a free operating system, open source and developed by its competitor. This is clear proof that the American system of intellectual property protection is broken and dangerous. Ballmer himself admitted last week that he is behind this market, but this does not prevent him from making a profit exceeding a hundred million dollars by taking advantage of its competitors' work.

For now, no court has upheld a violation of Microsoft patents by Android. HTC, Apple, Nokia, Microsoft and Google are entangled in several lawsuits that could change that. HTC has sent out a press release to journalists to belie rumors that claimed that Microsoft wanted to spend $ 5 to $ 7.50 or even $ 12.50.

The fact that it focuses only on this aspect of the case appears to corroborate the report by Citi puts the figure at $ 5 per phone sold Android. HTC has sold 9.7 million Android smartphones in the first quarter of this year. It is now the largest manufacturer of Android phones. HTC expected to pay about $ 300 million (approx.

EUR 200 million) this year to Microsoft to continue to sell Android smartphones.

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