Microsoft Strengthens Its Android Earnings By Trapping ZTE !

Must Read

Are You A Gaming Geek: ‘Five Commandments’ Before You Buy Video Games Online !

Does your day start with joysticks instead of coffee mugs? Or as a kid your best friends were the...

The Growth of OTT: Blip in the Radar Or a Real Threat to Traditional TV?

People are attached to their smartphones way more than they're to any other gadget. In fact, the average person...

Top Softwares for Business in 2021 That Every Startup Entrepreneur Must Use

In the conditions of the global pandemic and economic crisis, small and medium-sized businesses face different problems and do...

Microsoft Inc (MSFT) has announced it’s patent agreement with ZTE Corporation (SHE: 000063) on Tuesday. The deal grants ZTE a license to Microsoft’s worldwide patent portfolio for ZTE phones, tablets, computers and other devices which powered by Android or Chrome OS. However, Microsoft did not disclose the amount ZTE would pay, under the agreement.

ZTE is not the first one to come under the belly of Microsoft due to patents the company bought from Novell; In the fiscal Q4 2012 Microsoft earned more than $1.3 Billion from Android Royalties; largely from Korean Smartphone giant Samsung (KRX: 005930) and HTC (TPE: 2498). On an Average Microsoft is collecting $10 on each Android device sold; Microsoft is claiming $12-$13 from Samsung which controls more than 50% of Android market where as HTC pays only $5. Microsoft says– “80 percent of Android Smartphones sold in the U.S and a majority of those sold worldwide are covered under patent agreements with the company from today”

One must not be surprised with the fact that Microsoft is minting millions of dollars from the product of its arch rival Google – An earning source helping Microsoft to earn higher than its own homegrown Windows Phone OS. All thanks to patents Microsoft once bought from Novell, Inc.



Microsoft Android Patents License

The Company was recently in a hype after signing its biggest patent deal with Foxconn, formally named HON HAI Precision industry Co (TPE: 2317); Taiwan design manufacturers has to take a license on any product powered by Google’s Android or Chrome Operating system.

IS Microsoft Concentrating More On Android Than Homegrown Windows OS?

Android is unilaterally dominating the Smartphone industry with over 68% market share. Due to affordable price tags and strong mobile eco system, Android phones are going to outburst the market in upcoming years. Astoundingly, Microsoft Windows OS is still struggling for a firm footing in the smartphone market, while trust of users continue to deteriorate day-by-day in spite of all efforts by Nokia.  Microsoft’s PC sales declined last quarter and Surface RT and Surface Pro failed to create the impact as well. Apparently, Microsoft has understood that its difficult to take Android head on and still keep investor interest intact by only banking on its benefits from Android.

Successful business models can always en-cash opportunities and if it is at the cost of its competitors or from their products/services – there is nothing more interesting than this. Incidentally, Microsoft knows how to turn royalties into money making machines.


  1. Um, ZTE said they intend to make a Windows Phone 8 device (as Huawei already does).
    Isn’t it just a tiny bit disingenuous to claim that ZTE and Huawei are “trapped”?
    Just sayin’…



Please enter your comment!
Please enter your name here

Latest News

Book Uber Cabs Via WhatsApp Now: Service In More Cities Soon

After grocery and payments, it's time for Uber cabs on Whatsapp! The digital era has brought us endless advantages...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This