By Anton D. Nagy | September 28, 2011 9:15 AM
Microsoft is already rumored to make $5 in royalties off of each HTC phone sold running Google’s Android platform and reports indicated that Redmond demanded around $15 from Samsung for every Android phone made by the Korean company.
Well, today Microsoft announced that a deal has been reached with Samsung: Redmond seems to have lowered their demands to $10 per device but the catch is that Samsung will offer a closer alliance with Windows Phone. “Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and we’re investing to make that a reality <...> Microsoft believes in a model where all our partners can grow and profit based on our platform”, said Andy Lees, president of Windows Phone Division at Microsoft.
With this deal already inked, there is absolutely no doubt that Microsoft is making more money out of Android than it does from its own Windows Phone platform. However, intellectual property has to be protected and royalties are due where they exist and are recognized.
Just a small calculation: if we’re to take only the 10 million Galaxy S II units sold by Samsung, that would make Microsoft richer by $100 million. Extend that to all the other Samsung Android phones (and drop in $5 from every HTC Android) and you’ll smile.