Wednesday, September 14, 2011

Microsoft Demanding $15 Per Android Handset From Samsung



Well, it’s not new info that Microsoft earns a hefty sum of money with every Android handset sold. That is because Google uses some of the IP rights which are originally patented by Microsoft. So as a result every manufacturer has to pay a certain amount of money to MS for every Android smartphone sold. This is because of the open source nature of the platform; Google clearly has washed its hands off this. Some companies like HTC pay $5 per Android smartphone sold, while others pay slightly more. But Microsoft seems to have raised the stakes considerably now for the South Korean electronics giant Samsung.


If rumors are to be believed, Microsoft is demanding a whopping $15 per Android smartphone sold by Samsung. This apparently is Microsoft’s way of blackmailing Samsung so that they start paying more attention to WP7. HTC has a few WP7 devices under its kitty, hence the concession. It’s hard to believe that a company like MS would resort to something like this. Samsung is said to be negotiating for something under $10 per smartphone. Both the companies have remained mum as of now regarding the matter, so there’s no way of knowing what they’re thinking. With $15 per smartphone, Microsoft could make a lot more than what it makes with WP7. If we add up the sales numbers of the original Galaxy S and the Galaxy S II, Microsoft could make about $195 million. And the sales numbers of the devices are much higher since they are still being sold so it could come down to a lot more than $195 million. You do the math.

No comments:

Post a Comment