Software Giant Microsoft knows how to tread obstacles. When Android started to gain in popularity and was picked up by a number of major manufacturers to use in their phones and tablets, there was a general impression that Microsoft would be on its back-foot but it is clear for everyone to see that with its patent licensing Microsoft is increasingly making more money from the sales of Android devices.
A Reuters report says, “Microsoft Corp has demanded that Samsung Electronics Co. Ltd. pay $15 for each smartphone handset it makes based on Google Inc’s Android operating system as the software giant has a wide range of patents used in the mobile platform, local media reported on Wednesday.”
Samsung made no immediate comment but it would likely seek to lower the payment to about $10 in exchange for a deeper alliance with Microsoft for the U.S. company’s Windows platform, the Mail Business Newspaper quoted unnamed industry officials as saying.
Microsoft charges handset makers such as HTC and Samsung to use its Windows mobile software and has tied up with Nokia to challenge Google and Apple Inc in the smartphone market.
Geek.com blog posts, “The high profile patent deal agreed in May saw HTC start paying $ 5 to Microsoft for every Android phone it shipped. This is significant when you are shipping millions of handsets.” But it was just the start, and Microsoft has now revealed deals signed with Onkyo, Velocity Micro, General Dynamics Itronix, and most recently Wistron which even signed up for Chrome OS patent licenses.
Matthew Humphries of Geek.com opines, “ Samung can’t really contest this because so many other companies operating in the same markets have signed up for a license. But Samsung does have the advantage of being a desirable hardware partner for Microsoft.
With that in mind we could see some new Windows Phone 7 and Windows 8 devices make it on to the Samsung product list in the near future. In exchange, expect that $15 to come down to $10, or even $5 to match what HTC are thought to pay.”
Analysts forecast Samsung, the world’s No.2 handset maker, to have sold about 19 million smartphones in the April-June quarter, with the dominant position running on Android. It is widely expected to emerge as the No.1 smartphone maker, replacing Nokia’s more than 10-year reign.
Samsung’s Galaxy S II, successor to its flagship Galaxy S smartphone, which runs on the Android platform, has sold more than 3 million units since its debut in late April.