Microsoft to make $444 million from Android

Written by Clive Webster

September 30, 2011 | 15:45

Tags: #android #extortion #goldman-sachs #patent #windows-phone-7

Companies: #google #microsoft

Android might be Google’s phone operating system, but Business Insider has just reported that Microsoft will make ‘$444 million in revenue from Android patent deals for fiscal year 2012 (started in July 1, 2011, ends June 30, 2012).’ This information was revealed in a ‘note from Goldman Sachs's tech analyst team.

Goldman Sachs estimates that Microsoft will earn ‘$3-$6 per Android device sold. With settlements from Samsung, HTC, and others, Goldman arrives at its estimate. It also says the patent deals will add $0.04 in EPS [earnings per share] annually for Microsoft.’ The report doesn’t state what patents the payments are for.

Google is reported to be annoyed by Microsoft’s ‘extortion’ over mobile phone patents. A Google spokespercon talking to PC Pro said, ‘This is the same tactic we’ve seen time and again from Microsoft... Failing to succeed in the smartphone market, it is resorting to legal measures to extort profit from others’ achievements and hinder the pace of innovation.

However, Business Insider says that while the $444 million payout sounds good for Microsoft, ‘it's an empty victory... the money it gets from Android is almost nothing, especially when you consider the incredible damage Android is doing to Microsoft's dominance as a computing platform.

Agree with Google that Microsoft is extorting it, or do you think this is just a case of people getting for their work? Let us know in the forum.
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