Feeds

Microsoft's Android patent ransom to 'total $444m' next year

Goldman Sachs guestimate shows peanuts for patents

Combat fraud and increase customer satisfaction

A report from the technology analysis team at Goldman Sachs estimates that Microsoft will suck up $444 million in Android royalties over the coming financial year.

The group estimates that Microsoft will make between three and six dollars per device, after signing patent-protection deals with smartphone and tablet manufacturers, according to Business Insider. Samsung was the latest manufacturer to sign up with Microsoft, with HTC joining in April 2010. Now Microsoft is focusing its efforts on Motorola, which next year may be owned by Google.

Redmond tells The Register that the mathematics used in the calculations were Goldman’s own and it wouldn’t be commenting, but it’s possible that Goldman Sachs has underestimated the amount of money Microsoft makes. When Samsung was in negotiations last year, royalty payments were reported as being around the $10 per handset.

However, the money is still a drop in the ocean for Microsoft, considering it made almost $70 billion in revenues last year. While $444 million will fund a lot of developer hours, Microsoft has plowed many multiples of that into the Phone 7 mobile OS, and still has to settle for just aiming for third place in the market, let alone achieving that status.

Nevertheless, any manufacturer looking to use the Android handset now seemingly has to factor in a payment to Microsoft for the permission to use technology to which it claims it owns the patents in order to escape prosecution. This will add to the cost of handsets – but considering that Android smartphone sales are currently beating Microsoft’s like the proverbial red-headed stepchild, El Reg suspects that manufacturers will learn to live with the patent surcharge. ®

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE & Vodafone will let you BONK on the TUBE – with Boris' blessing
Transport for London: You can pay, but don't touch
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.