Microsoft Strengthens Its Android Earnings By Trapping ZTE !

Must Read

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

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.

Advertisements

 

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 COMMENT

  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’…

    Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

New Android Malware Steals Your Banking Credentials And Let Hackers Access Your Smartphone

If you are an active user of banking apps on your Android smartphone, you must pay close attention to it.

An IT Service Help Desk Is Essential To Drive Business Growth

There's no debate about the fact that an IT service desk, when properly run, leads to both short-term and long-term business growth....

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...

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,...

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...

More Articles Like This