Microsoft Making $5 Off Every HTC Android, HTC Doesn’t Disclose

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Last year we head some reports that Microsoft is cashing in $20-$40 off each Android smartphone sold and more recently a new amount is being speculated, in another context. Last April, Microsoft announced a patent agreement with HTC under the terms of which Microsoft will receive royalties for every Android smartphone HTC ever sells.

According to some calculations, the amount could be as high as $5 per HTC Android smartphone sold. Extend that to approximately 30 million units and Microsoft cashes in a nice amount of $150 million. That’s HTC only and according to reports, Redmond is seeking similar settlements with other OEMs manufacturing Android smartphones looking to cash in anything between $7.50 and $12.50 per unit sold.

U.K.’s Guardian reached out to HTC for a confirmation of the alleged information and, after a first reaction of “oh, that sounds far too high. I don’t think we’d be paying that” HTC followed up with an official statement: “Last year, HTC and Microsoft did announce a licensing agreement for Android handsets. Such agreements are not unusual in the wireless industry, and as is the case with all such agreements, HTC does not disclose financial terms”.

Silenzio stampa as you can clearly see but even if that royalty fee would be $1 per Android sold, that would make Redmond around $30 million richer. The amounts might as well go to R&D, other divisions, Nokia or simply to the piggy bank. Clearly Google’s Android “open source” platform is more profitable for Microsoft than its own Windows Phone at the moment — and in order to be equally interesting financially Microsoft would need to sell around 10 million Windows Phones, as the license for the Redmond mobile platform is rumored to be around $15.

Source: Guardian, Asymco, Microsoft

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Anton D. Nagy
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