Microsoft's Q2 revenue from Android estimated at three times its Windows Phone revenue

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Thanks to royalty payments from awards related to patent complaints against HTC, Microsoft is estimated to have made three times more revenue from sales of HTC’s Android phones than it did from sales of Windows Phone licenses last quarter. Asymco analyst Horace Dediu estimated this past May that Microsoft had made five times more money from HTC’s Android phones than its own Windows Phone platform through the first quarter of this year. In the second quarter, Dediu says Microsoft made approximately $21 million from 1.4 million Windows Phone licenses at $15 a piece, while the company’s $5-per-device royalty from sales of 12 million HTC Android phones brought in $60 million in the quarter. Dediu’s numbers are based on Canalys’ Windows Phone shipment estimates and the 12.1 million handsets HTC says it shipped in the second quarter, though we’re not sure how the analyst determined that 12 million of those devices were Android phones. HTC also sells phones that run Microsoft’s Windows Phone operating system and phones based on Qualcomm’s Brew MP platform.

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35 Comments
  • http://twitter.com/UrbanEnigma Yves

    I guess Google has a point about Microsoft’s patent complaints

    • http://www.twitter.com/wixostrix WixosTrix

      They need to complain about the patent system, not the ones who are just doing what they have the rights to do, protect their IP.  Everyone does it, Microsoft is just being singled out because they are making a killing off the success of Android. 

      • Anonymous

        Co-signed. The patent system in the U.S. is what’s fucked up. I expect corporations to take advantage of any and every tool at their disposal to maximize their profits. That’s what corporations do. Anything they do that’s to the benefit of the consumer without a direct or indirect benefit is just gravy.

      • Joegreentea

        Maybe we should ignore patent system and become more like china!

      • Anonymous

        @6f4cd54007257a1dbfb2b8a2b65ea711:disqus Of course! I’ve been such a fool! As we all know, there’s no room in this discussion for a reasoned, nuanced discussion whereby reforms are implemented. It’s either worship at the altar of the status quo, or… what was your point, exactly? China has a patent system. As a matter of fact, recognizing the monster that the U.S. has created, they’re encouraging people to patent anything and everything they can think of.

        Your argument is to either keep on doing what we’re doing, or to keep on doing what we’re doing. I’m sure your retort seemed very witty when you were typing it, but that’s a swing and a miss.

      • Anonymous

        Not everyone does it. Google doesn’t do it.

        And smaller players definitely don’t. They don’t have the money to bring frivolous patent claims. It’s the companies with pockets deep enough to acquire huge patent portfolios and bring constant litigation that do this kind of stuff.

        Is the patent system broken? Yes. Should they complain about that? I’m sure they do.

        Is it wrong to complain about people who abuse that broken system? Of course it isn’t. You don’t take advantage of a loophole and tell others pointing it out that they should change the system and not you. You’re deliberately exploiting a loophole.

  • Anonymous

    What Windows’ revenue?

    Do you mean those ‘fitty cent’â„¢

    • Anonymous

      ms makes more $ from android than google does from android

  • Guest

    This is so UNREAL!!..the D.O.J need to investigate the Patent Office

    • Anonymous

      The patent system needs to be reworked for NUMEROUS reasons aside from malicious intent. Many of them are so vague, you can have a different implementation and still “violate” that patent.

      • Anonymous

        Google has people in Washington, they should get to work.

  • Anonymous

    Funny thing is, this doesn’t negatively effect Android’s success and dominance at all (yet)… but speaks volumes about MS’s own mobile OS. (-_-) Sad.

    Let’s hope for an upswing with Microsoft Doors 8 Mobile.

    • http://www.twitter.com/wixostrix WixosTrix

      8 months =/= 3 years lifetime

      • Anonymous

        Who said it did…? It takes time to go from 0-Hero. But from the look of things, the future is bleak. Anyone on the market for a phone wants one of two things most of the time: Android or iPhone. I’ve seen just one WP7 device since it’s inception, and that was a Focus that a co-worker was testing for our IT dept.

      • http://www.twitter.com/wixostrix WixosTrix

        Right, but in the first year Android came out, people only wanted the iPhone.  Once Mango hits, Microsoft and Nokia are going to have huge marketing campaigns, as well as their OEM and carrier partners, though theirs will probably not be a big.  Either way, people will know about the phones and they’ll want them, it just takes marketing.  The OS is already solid and hardware will be on par with competing devices.  I mean, don’t get me wrong, it could gain no traction and fail, but I doubt that will be the case.

      • Anonymous

        I agree. But even with a massive marketing campaign, it’s still up to the consumers to actually find the devices appealing. Basically, “Why should I get this other the other two success mobile platforms?” People liked Android for the various form factors and the numerous customizations available in its unrooted form, compared to iOS’ dead-simple ease of use.

        We’ll have to wait and see what their numbers look like in the first half of 2012.

      • http://www.twitter.com/wixostrix WixosTrix

        I get what your saying, but most consumers are very simple minded. The majority of Android and WP7 devices will feature very similar form factors and WP7 is simple to use as well. Android will always be more customizable because of it’s open nature, but we’ve all seen this before with Windows Mobile, and quite frankly, I think it’s worse with Android because of the security exploitations. People are noticing this too.Subject: [bgr] Re: Microsoft’s Q2 revenue from Android estimated at three times its Windows Phone revenue

  • João Rossa

    Ridiculous MS….

  • Daithi

    Wow. 1.4mn licenses in the entire quarter.That’s about 60 hours worth of android phones.

    No wonder they’re piggybacking on Android. Pathetic.

  • Anonymous

    “Priests need nuns, doctors need nurses. So ho’s need pimps.”

  • Anonymous

    M$ – “BUT W’E'RE NOT TROLLING”

  • Anonymous

    That’s a lot of change just for a quarter’s worth of royalties. Now that Microsoft owns part of all those 4G patents that # might Triple cause 4G territory is where HTC is heading.

  • Anonymous

    Oooooo the irony, what is HTC without google/android.  How dare MS speak(tweet) against the mouth that feeds them!

  • AC

    Why is Microsoft even trying to make a new mobile OS? Stop selling Windows phones, that ways there are more people buying Android phones and then they make more of royalty revenue.  Plus no expenses to develop a new platform.

  • Trisjen1983

    Microsoft is on life support. Had it not been for Android they would have been dead. Money sucking leeches!!!! You know your phone lineup sucks when you make more money off patent licenses than you do on phone sales!!!!

    • Anonymous

      I’m not a fan of Microsoft, God no. But “life support”? Did you see their latest financial report?

      • Anonymous

        I’m talking about life support in smartphone sales nothing else, not software or anything else. They are on life support when it comes to smartphones!!!!

    • http://www.facebook.com/profile.php?id=1554987923 Jason Morris

      and then you woke up..

      • Anonymous

        And then you shut up..

  • http://twitter.com/Tryn2Bbrief Martian Ambassador

    $5.00 per device is going to look like the good old days when Apple gets through trashing Android OEMs with some very invincible patents on multi-touch UI on a capacitance touch screen.

    It will be Apple’s choice to make Android OEMs pay dearly to license, be crippled in functionality by the forced removal of infringing features, or be altogether banned from the only relevant markets where money can be made.

    Making Google cry has become Steve Jobs’ latest hobby. He’s going to prove to be very good at it.

    • Anonymous

      I don’t  think Steve Jobs is doing a whole lot over at Apple.  He comes out and announces the new Devices, but Day to Day operations, No.   As for the Patents, all the Lawyers working for Apple are taking care of that, like they should be doing!  Apple has to pay out to other company’s for patents THEY use, it’s a 2 way street!!!   If you don’t defend your Patents, you’ll loose them!

  • http://pulse.yahoo.com/_EZVLTTP6B2FQDTG5ITY3TNEWDE Velma Mcfadden

    I just paid $22.85 for an iPhone 4-32GB and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $674 which only cost me $62.81 to buy. Here is the website we use to get it all from, CentHub.com

  • Anonymous

    Look at your comment. Back to mine. Back to yours NOW
    BACK TO MINE. Sadly, it isn’t mine. But if you stopped trolling and
    started posting legitimate crap it could LOOK like mine. Look down,
    back up, where are you? You’re scrolling through comments, finding the
    ones that your comment could look like. Back at mine, what is it?
    It’s a highly effective counter-troll. Look again, MY COMMENT NOW
    HAS MANY THUMBS UP.

    Anything is possible when you copy and paste.

    I’m on a laptop

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  • http://twitter.com/Translatethis27 Translatethis27

    MS the Patenttroll are still alive. ANDROID FTW

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