Saturday, June 4, 2011

Microsoft makes 5X from Android than Windows phones

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If you were wondering how Microsoft was able to pull one debbacle after another in form of its Windows Phones, then here's the secret: According to Citi anlyst Walter Pritchard's latest big report, Microsoft earns five times more money from android than WP7s. And here's how it's happening: Back in April 2010 Microsoft settled an intellectual property infringement case against HTC. In the agreement, HTC agreed to pay Ballmer and his geekybench $5 per shipped Android set. HTC since then has sold 30 million sets, adding $150 million of fresh greens to Microsoft's piggy. In the interim, Microsoft's sold two million Windows Phone licenses over the same period, which accounts for $30 million dollars using an estimated license fee of $15 for each Windows Phone shipped.

But there's more:Microsoft has now sued other Android phone makers. In other words, even if HTC decides to move away, Microsoft will still be winning. After all, there is the Windows Phone 7 Mango luck also to factor.

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