Microsoft will generate $444 million in revenue from Android patent deals according to Goldman Sachs.
Goldman claims that Microsoft’s lucrative Android patent deals will generate $444 million in revenue for the fiscal year 2012 (July 1, 2011 to June 30, 2012). Business Insider reports that Goldman’s estimates were revealed in an analyst note on Thursday. Goldman estimates that Microsoft receives $3-6 per Android device sold. The estimates follow similar reports that Microsoft receives $5 for every HTC device sold. Microsoft is widely believed to generate more revenue from Android patents than its own Windows Phone licences at present.
Microsoft announced on Wednesday that Samsung had signed an Android patent deal with the company to cover its use of Google’s operating system. The software giant will receive royalty payments for each Samsung smartphone and tablet that ships with the Google Android OS. Microsoft has managed to sign identical deals with six other Android manufacturers in the past three months and is currently involved in litigation with Motorola to force a similar deal. Microsoft has previously inked patent protection deals with Wistron, General Dynamics Itronix,Velocity Micro,Onkyo, Acer and Viewsonic.
Microsoft’s revenue for fiscal 2012 is estimated to be around $75 billion. If Goldman’s estimates are accurate then Microsoft’s $444 million from Android is a small part of its overall revenue.