In Q2 Microsoft is estimated to have made more money from licencing patents to HTC for use in Android handsets then it did from selling its own Windows Phone handsets.
As part of a patent settlement HTC has to pay $5 from the sale of each handset to the Redmond-based company.
Asymco analyst Horace Dediu estimated that if 1.4 Windows Phone 7 units were shipped in Q2 at $15 a unit that made $21million in revenue. HTC shipped 12 million units and $5 of each went to Microsoft, making the company $60 million dollars.
The figure might not be totally accurate- because some of HTC’s 12.1 million handsets run Windows Phone 7, however it’s clear that Android is proving very fruitful for Microsoft.
Citi analyst Walter Pritchard reported in May that Microsoft may make more money from Android rather than it’s own operating system.
It’s also a testament to the huge success HTC is having with an 165.9% increase in market share since Q2 2010.
Microsoft is currently pursing other smartphone manufacturers – including Samsung – for licensing fees – and it’s easy to see why.