Microsoft’s Android Patent Licensing Deals Revenue Is Now Nearly A Billion Dollars

Microsoft Patents

Microsoft yesterday submitted Form 10-K filing with the Securities and Exchange Commission. As we saw during the last quarter financial results from Microsoft, Windows Phone revenue increased by $1.2 billion. Windows Phone revenue includes both Windows Phone OS licensing revenue and revenue generated via Android patent licensing deals. Microsoft started licensing their mobile related patents to Android device makers few years back. Almost all the major players except Motorola has signed up for this program.

Microsoft commented that the $1.2 billion is due to “an increase in patent licensing revenue and sales of Windows Phone licenses,”. If you do a rough calculation, around 26 million Windows Phone units were shipped last year. If Microsoft gets $15 per Windows Phone OS license, total revenue will come around less than $400 million. So, the remaining revenue of the division comes from Android patent licensing deals which I think will be nearly $1 billion.

What do you think of this new revenue opportunity for Microsoft?

via: Geekwire

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