Taiwan-based HTC Corp.’s every Android-based phone fetches $5 for software giant Microsoft, a Citigroup report on Microsoft claims.
The newly released report says that Microsoft receives $5 for HTC’s every Android phone as a part of a patent dispute settlement with the Taiwanese manufacturer of smartphones and tablets based on Google's Android and Microsoft's Windows OS.
Available figures claim that HTC has sold as many as 30 million Android handsets, which means that Microsoft pocketed around $150 million from HTC.
The report adds that Microsoft is also preparing to drag other Android phone manufacturers to court for alleged infringement of its patents. The Redmond-based company aims to get $7.50-$12.50 per unit license to settle patent disputes.
Citi analyst Walter Pritchard writes, "Our understanding is that Microsoft is looking for a $7.50 to $12.50 per unit license to settle alleged infringement of Microsoft patents.”
Any would-be patent settlement would strengthen Microsoft's claim that Android breaches its intellectual property, which could squash the margins for Android-powered devices, and make Microsoft's OS-based gadgets more attractive.
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