Microsoft Makes $2 Billion From Android Every Year From Patent Royalties

Android may be one of Microsoft’s biggest rivals when it comes to fighting it out in the global computing market, yet Microsoft still manages to make money out of Android in a strange way according to Business Insider. We all know that Android are putting Microsoft under pressure – they are outselling Microsoft’s products dramatically in the tablet and smartphone markets and Android is even beginning to take hold in the desktop market too. Yet not many people know that Microsoft earns patent royalties on 70% of Android devices that are sold around the world each year. The report by Business Insider says Microsoft makes, on average, $5 per Android device sold by the likes of HTC, Acer, ViewSonic, Samsung, LG and Barnes & Noble. This $5 is made up purely of patent royalties.  It isn’t specifically disclosed which patents Microsoft use to generate this revenue but one thing is for sure, with the acquisition of Nokia’s handset division earlier on this year Microsoft accumulated a large number of additional patents it can apply to the smartphone market and we will no doubt see Microsoft vigorously enforce those to continue reaping the rewards from Android’s success.

Image courtesy of Nethope.org