Microsoft to get $20 to $40 from every HTC Android phone sold?

Ilinca Nita  By on 29 Apr 10

Yesterday we’ve reported about the HTC – Microsoft agreement according to which HTC has agreed to pay royalties to Microsoft, because it turned out that the Taiwanese company’s Android phones use some technology patented by the Redmond giant.

While HTC and Microsoft have not disclosed the financial aspects of the agreement, it looks like HTC may have to pay serious cash to Microsoft.

A Bloomberg article has it that analyst Rob Enderle estimates that HTC, as well as other unnamed phone makers, may have to pay Microsoft $20 to $40 for each Android handset sold. Of course, analyst predictions can be (and often are) wrong. $40 per phone is way too much.

Rob Enderle also says that “Android is going to fall off as an expensive and risky platform”, unless Google manages to avoid paying that much money to Microsoft.

I’m not sure what Google has to do with the fact that HTC needs to pay royalties. Yes, Android is Google’s, but I think the alleged patent violation is related to hardware rather than to software, or maybe to the way HTC implements Android on its hardware. Otherwise, Microsoft could have directly sued Google, right?

It’s not clear yet how new Android phones from HTC (like the just-launched Verizon Droid Incredible, seen above) will be affected by this, but we’ll report back when new details emerge.

Via EuroDroid, PocketNow

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  • http://www.google.com/profiles/cesarcardoso Cesar Cardoso

    “Otherwise, Microsoft could have directly sued Google, right?”

    Microsoft WILL NOT sue Google directly, as Apple hasn't sued Google directly. Suing Google directly would let the Googleplex patch Android and keep pumping androids. Suing the phone makers will scare them and potentially stopping the green robot's momentum (and saving Windows Phone 7 *and* Apple's prision).

    And Microsoft can always count on 'analysts' like Rob Enderle, a known FUDder (ask someone more knowledgeable on Linux community).

  • foo

    “A Bloomberg article has it that analyst Rob Enderle estimates that HTC, as well as other unnamed phone makers, may have to pay Microsoft $20 to $40 for each Android handset sold. Of course, analyst predictions can be (and often are) wrong. $40 per phone is way too much.”

    Rob Enderle is famous to be often and spectacularly wrong.

    * He predicted the demise of Apple — the company value grew 1000% since then
    * He predicted the iPhone would be a failure
    * He predicted that SCO would beat IBM and Linux — the company is now bankrupt.
    * He predicted that Vista would be a huge success.

    He is a Microsoft shill.

  • http://twitter.com/M0betta Maurice M.

    I thought Google was the developer of Android. If mot they should at least own the rights. Right? So why is Microsoft suing phone manufactures? Is it possible that Microsoft is attempting to slow down Android's momentum? Most HTC phones are originally equipped with Windows Mobile but Droid App's are preffered. Hmm, I've personally held out from getting a new phone for almost a year until “the right one” comes along. By the looks of it th EVO/WiMAX seems to be the candidate. Among the many features that won me over, the multiple device connectivity was the deal maker. I ca't wait! Could anyone tell me if a stylus is included in with this phone.

  • http://WWW.MOBILENEKO.COM -S-AIRUS–NEKO

    really interesting , so HTC should only stick on making Windows smartphones only, and google needs to find manufacturer . am not big fan of HTC . sometime i think it would be really cool if nokia made some Android phones

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