According to estimates from Goldman Sachs’ tech analyst, Microsoft will be making a pretty penny from Android licensing this year. Somewhere in the realm of $444 million, to be exact.
This comes after a settlement with Android device makers such as Samsung, HTC and others and comes from the $3 to $6 that Microsoft makes on each Android device sold.
Patents, Patents, Patents
A long time ago Microsoft’s Steve Ballmer said that Android is not free. They talked about patent licensing and other such factors that came into Google’s Mobile operating system. We also heard about the Nortel Patents that had been purchased by Microsoft, Apple, RIM and a few other tech companies. Those will no doubt be big moneymakers for the tech giants.
Microsoft has been known to sue Android device manufacturers with features that allegedly infringe on their patents. This is why they get money from Android. It’s all part of a settlement agreement.
Does Microsoft Make More Money From Android Than Google?
We can’t say for sure, but it’s very possible that Microsoft makes more money from Android than Google does. This may also be an indication that Microsoft is more IP savvy than Google. They’ve been at it for many more years, and they have had to defend IP before.
The Other Side?
According to the report, Microsoft will make about $75 billion in the 2012 fiscal year. They mention that to Microsoft, that’s just pocket change (wouldn’t that be nice?) and that considering how much Android is eating into Microsoft’s chunk of change.