Windows Phone 7 Financed by Android OEMs

Microsoft will make by the end of this year well over $1.3 billion from Android devices.

MicrosoftLast week we learned from the Web that Microsoft is getting paid by Android smartphone OEMs a licensing fee in order to meet patent and copyright laws. This is no news, out of curiosity I just did the exercise of calculating how much in US Dollars that really was to put this fact into context and see how it affects the dynamic in the mobile marketplace.

Google has stated recently that they are registering about $500,000 Android smartphones a day (yes, five hundred thousand per day, you read right).

AndroidIt is also known that the OEMs for Android smartphones have to pay a license to Microsoft because Microsoft has patented and/or copyrighted features that were later included into Android customizations. Last week we also learned how Microsoft is making loads money off of all Android devices being sold; specifically Non-Samsung OEMs are paying $5 per unit sold and Samsung is paying $15 in licenses/royalties/usage fees per unit sold to Microsoft. This means that Microsoft is making a killing off of Android; which should pretty much finance Windows Phone for as long as they really want…

500,000 Android units a day
124,000 Samsung Android units a day or $1,860,000 daily
376,000 Other Android units a day (non-Samsung) or $1,880,000 daily

2011 Microsoft annual revenue from Android devices: $1,365,100,000

But this is nothing compared with 2012… since Android is growing at a pace of 4.4% weekly.

The global mobile market is still growing and it does not seem to be slowing down. It is not only converting feature phone users into smartphone users, but it is also gaining new traction and increasingly gaining new users. It is more convenient and inexpensive to be able to browse the web on a smartphone than on a more expensive computer. This is particularly true in developing countries where cellular networks are outpacing wired broadband.

About Diego Samuilov

Editor in Chief/Founder Diego Samuilov is an executive, consultant, IT strategist and book, e-book and web published author. Diego has worked in Microsoft’s environments since 1990. Since then, he has successfully filled many positions related to the Software Development lifecycle. Having worked as a developer, analyst, technical lead, project lead, auditor and, since 1996 a project manager, manager, director and VP in the Software Development, Server, Desktop and Mobile environments. Diego is very passionate about the software development process, which has played a great part in his skills development. Since the introduction of the first ever PDA (the Apple Newton MessagePad) in 1994 and Windows CE in 1998 he has pioneered and pushed the envelope in the field of mobile software development. He has developed many solutions used in mobile markets, desktop and server environments. He participates in public and private developer community events. He actively collaborates with the community at support forums and blogs. Diego is the author of "Windows Phone for Everyone" available [HERE].