MS reaping windfalls from Android

Dylan Bushell-Embling
telecomasia.net
Android may be storming the handset sales charts, but two recent pieces of research show the news is not all good for the Google-owned OS.
 
A Citi analyst has estimated that Microsoft gets $5 for every HTC phone that runs Android, as a result of a settlement over an IP lawsuit, BusinessInsider reported on Friday.
 
Microsoft is also suing other Android handset makers, including Motorola, and is reportedly seeking to receive between $7.50 to $12.50 per device in future agreements.
 
If calculations by market intelligence firm Asymco are accurate, this means Microsoft is and could continue to receive more money from Android than from the rival Windows Phone platform.
 
Worse still, Google has very little IP with which to defend such claims, according to Citi.
 
Citi has also estimated that Android handset makers have operating margins in the range of 10%-15%, and makers of tablets using the OS have to contend with margins of just 2%-3%.
 

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