Feeds

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

Goldman Sachs guestimate shows peanuts for patents

Secure remote control for conventional and virtual desktops

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
BEST EVER broadband? Oh no you DIDN'T, Sky – ad watchdog
Rival BT moaned that claim was misleading
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.