Here’s some startling information . According to Citi analyst Walter Pritchard, Microsoft gets $5 for every HTC device sold, which is a patent dispute settlement over an IP infrigement. So, if we calculate how much MS earned from HTC’s androids alone, 5$ for 30 million HTC androids, thats 150 million , more than what MS gets for windows phone ( 2 million licenses, each 15 $ = 30 million ).
Also, supposedly, MS earns from other Android manufacturers too, nearly 7.50 $ to 8 $ per device. Now, we know why MS bought skype , right ? Just kidding. Point is, it earns more from Android than Windows Phone.
Another interesting claim is that, Android OEMs barely get 10 – 15 % margin for smartphones and 2 – 3 % for Tablets.All those numbers just make partnering with Microsoft just better, eh ? No wonder, Ballmer famously proclaimed ” Android is not free “. Numbers look sad for the OEMs but i am wondering how they manage to cook so many devices with such low margins, arguably.
However, all these numbers are from a single analyst, so let us not judge immediately , wait for others’ take on this matter. Am sure this will spread like wildfire.