Analyst: Microsoft is making $2 billion a year from Android royalties



Author Surur // in News

imageLong time Microsoft-focussed analyst Rick Sherlund from Nomura financial is claiming that Microsoft is making 2bn every year in patent licensing for Android.

The revenue is said to have a 95% profit margin, making it nearly all free money.

Microsoft is long rumoured to be extracting between $5 and $15 from an increasingly large number of Android OEMs, including the biggest, Samsung, with nearly 1 billion Android handsets shipping each year.

According to Sherlund , who has a radical agenda, Microsoft is using this revenue to cover up steep losses in the Xbox division.  Sherlund wants Microsoft to sell Bing and Xbox, noting that they were out of place in the company’s line-up and did not contribute to the sales of smartphones or tablets or the Windows operating system.

Sherlund’s agenda gives a look at the future of Microsoft if the bean counters are placed in charge.  He wants the whole board replaced, and for Steve Ballmer to be bought out completely from the company to ensure he has no influence at all.

He further wants Microsoft to:

  • Build out Azure, the cloud platform that rivals Amazon.
  • Make sure its enterprise software works across platforms. Office needs to work on Android and iOS to compete with Google’s apps which are growing.
  • Skype and Yammer are not being taking advantage of. Microsoft should do more with both.

Does this vision scare our readers as much as it does me? Let us know below.


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