Feeds

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

Goldman Sachs guestimate shows peanuts for patents

Beginner's guide to SSL certificates

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.