It’s a little cash generator for Microsoft, in fact, it is not Microsoft but Android that pays a lot of cashflow to Microsoft. Why and how did they end up in this stage? Android is fast becoming very popular while Windows Phone has been in a very slow development; however seem like Microsoft has something in hand which can force Android mobile phone manufactures to pay them for license for each unit sold.
Microsoft sue all his former partners to pay them licensing fees for certain technologies or even certain features. Today Microsoft gets money from four manufacturers for each androphone sold. Thus HTC reverse $5 for each Android unit sold to Microsoft.
With the current deal between Samsung and Microsoft, an estimated 913 million dollars a year in potential revenue for license fees. For more information, Microsoft’s Xbox division has a turnover of $ 8.1 billion and 679 million in operating profits. Google said its mobile activities, including research and advertising services are estimated at $ 1 billion.
In short, it is a big boom for Microsoft and we can expect to see a much more aggressive from Microsoft about the issue of intellectual property. What will the reaction of Google to fight back against Microsoft?
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