06 July 2011

Microsoft wants $ 15 for every Android sold by Samsung

Microsoft wants Samsung to pay $ 15 license payment for every Android Smartphone sold by Samsung.

This value is greater than the licensing agreement between Microsoft and HTC in April 2010 which valued only $ 5.

Samsung insider sources pointed out that Samsung has asked Microsoft to lower its price to $ 10 in exchange for a deeper alliance with Microsoft patent on Android.

Microsoft launched incessant demands of the patent fees after the Android gaining popularity. Previously Microsoft has successfully requested patent fees to Winstron, HTC, Samsung, Velocity Micro and Itronix who uses Android OS.

By demanding $ 15, it means Microsoft's profit in patent license is greater than the total profits that they earn when selling Windows Phone 7 (U.S. $ 30 million).

In total, Microsoft earn $ 150 million profit from the agreement made with the HTC.

Samsung managed to sell 19 million smartphones from April-June 2011 in which the majority is Android, and their latest Android Smartphone Galaxy II was recorded sold 3 million since it was released in late April.

So by simply counting the total sales of Galaxy II alone (3 million x U.S. $ 15) Microsoft has been able to earn a hevty $ 45 million profit.

That's what I called passive income