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Technology Stocks : How high will Microsoft fly?
MSFT 506.87+0.8%3:46 PM EDT

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From: JakeStraw8/10/2011 12:09:30 PM
   of 74651
 
Android Is More Valuable To Microsoft Than Windows Phone 7
forbes.com

Microsoft’s Windows Phone 7 OS has failed to take off as successfully as it was planned while Android has rocketed. While the company expects sales to pick up with the launch of Windows Phone 7 Mango as well as the Microsoft-Nokia partnership, the Q2 sales numbers for Windows Phone 7 were disappointing.

However the company is licking its chops from the juicy licensing fees it gains from Android handsets. According to Horace Dediu, Microsoft sold around 1.4 million Windows Phone 7 in Q2, which brought in around $21 million from the $15 per Windows Phone 7 that it earns.

On the other hand, HTC sold 12 million Android smartphones in Q2, and as it earns around $5 per Android phone from HTC patent licensing fees, Microsoft made around $60 million. This is 3x the amount earned from its own OS from the licensing deal with HTC alone.

In addition to HTC, Microsoft is in the process of entering patent licensing agreements with almost every major Android device manufacturer. And if Android’s success so far is any indication, we should see hundreds of millions of Android devices shipped in 2012, and this could easily turn out to be Microsoft’s next billion dollar business.
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