Here’s a really interesting concept. Microsoft’s Windows Phone 7 hasn’t been the smash success they were hoping for, and MS in general has been losing the smartphone market share ever since iOS and Android have taken over. But Microsoft still owns many patents in smartphone technology.
Remember when there were rumors of Microsoft suing HTC because of Android? Turns out they didn’t sue, but rather came to a licensing agreement. According to an article in InformationWeek, HTC agreed to pay Microsoft somewhere around $5 in patent licensing per Android handset. That was back in 2010.
Now, sources say that Microsoft is coming after other manufacturers, and the current prices could be as high as $7.50 to $12 per handset. Consider for a moment how many Android handsets are currently being sold. Now, consider that Microsoft charges only about $10 per handset to license their own Windows Phone OS. It looks like Microsoft is making far more money with Android handsets than it is on their own product!
It really sheds new light on the whole “free and open” philosophy behind Android. Yes, Android handsets should be cheaper because the OS is free for anyone to use. But after you consider the licensing agreements from third parties, it suddenly doesn’t seem like such a great deal.
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