Microsoft to make $444 million annually from Android royalties, Goldman estimates

By on Sep 29, 2011 at 5:45 PM
Business September 29, 2011

Microsoft mobile revenue continues to grow, though for the time being it seems as though the bulk of it is coming from Android. Goldman Sachs analysts on Thursday estimated that the software company will pull in approximately $444 million in fiscal 2012 from licensing deals made with various Android vendors such as HTC and Samsung, based on royalties of $3-$6 per Android device sold. Asymco’s Horace Dediu estimated in August that Microsoft took in approximately $21 million in revenue from Windows Phone licenses in the second quarter, and he believes the company earned roughly $60 million from Android royalties over the same period from HTC alone. With Samsung now paying Microsoft royalties along with HTC, Acer and other Android device vendors, Goldman Sachs’ estimate certainly seems feasible.

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  • http://twitter.com/UgglyUI UgglyUI

    Microsoft is the Evil

    • Anonymous

      Next time come up with something original

    • http://www.searingarrow.com AlienSix

      Translatethis27, we have been through your troll ways….

  • Anonymous

    Good. Now go use that money on advertising.

  • http://www.flickr.com/photos/PACMan3000/ Paul A. Chapel

    Christ, Google only makes about 6 dollars per Android phone through advertising and they burned 2 years worth of profit when they acquired Motorola. And those profits includes everything in their business, not just Android.

    So essentially, Microsoft is making more money from Android than Google. LOL!

    • Anonymous

      Google’s goal isn’t really to make money from Android, Google is after creating a dynasty that Android started the fire and opened the door into every home in the world. Android is just the beginning of what Google is about to do when it’s all over with.

  • Anonymous

    I want those cool Android dolls :)

  • Anonymous

    M$ is certainly behaving like good capitalist and making that paper. 

  • Anonymous

    Microsoft is making more from Android than Google is….

  • Anonymous

    How about that “free” mobile OS now, Fandroids?  How does it feel putting your cash into Stinky Ballmer’s pockets?

    Not good, I expect.

    • Anonymous

      No matter how you slice it, WP7 still a piece of shit OS :)

      • http://www.searingarrow.com AlienSix

        Based on what? Your opinion. Good thing it isnt a fact

      • Anonymous

        have you owned a windows 7 phone ??? if not shut the front door , really Android is one big STD that has no cure , i currently own the htc thunderbolt and i hate it so much, waiting for apple or microsoft to release a LTE smartphone then bye bye android

      • Mark

        Your fault for buying a piece of shit phone.. Shouldve gotten a nexus

  • http://twitter.com/jonasyon Jona Sy

    Proof that no matter how well Apple and Google grow, Microsoft will continue to make money …and lots of it.

  • http://www.facebook.com/profile.php?id=1359390083 Sodiq Awokoya

    Google will have to find away to put end to, M$. I stop using M$ software and serves like 2-yrs ago never going back to that crap.

    • http://www.searingarrow.com AlienSix

      Tell Google to pay up and then maybe it will go away.

  • Sam Lee

    Can someone explain to me how microsoft makes money off of android?  

    • Anonymous

      Android OEMs use MS patents, they pay MS for every Android device sold as payment. MS profits every time an Android is sold.

    • Anonymous

      Think about how some Android devices can play Windows Media and open Office files.

  • Anonymous

    Ouch

  • Winski

    This is truly criminal…. Bomber should be getting a jolt of electro-shock for every copy of Android produced and then sold and then activated… Three jolts for one …….

  • Anonymous

    I have lost all respect for Microsoft, they can’t produce with their own products and now they make more of a profit from Android then Windows mobile? They need to fire Balmer.

  • http://www.facebook.com/people/Brian-Chau/618147054 Brian Chau

    Well at least MS would work with Samsung for a deal so that Samsung can continue with their mobile business. Apple, however, is suing Samsung big time to kill their mobile business. HTC next.

  • http://profiles.google.com/damusicman25 Lance Turner

    I dont get it. Can someone explain to me how this is happening? I been reading and catching up on this but it still dont make no since at all…….

  • Anonymous

    I guess thats the way for greedy companies that can not compete. smh its really terrible. This is what they referred to when they said companies are killing innovation!!! 

  • Anonymous

    Awww, those little droids are adorable. I want one!
    anonymize.it.tc

  • http://www.facebook.com/pages/Black-Friday-Deals-Video-Games-on-Sale/255008881203825 video games

    I finally saw Windows 7 Phone in Japan. It is the new Mango. And there were no actual working models for me to play with. Sad.

  • Tomy

    I finally saw Windows 7 Phone in Japan. It is the new Mango. And there were no actual working models for me to play with. Sad.

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