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ElCid16 (98.10)

Why Microsoft loves a rapidly growing Android user base.

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July 08, 2011 – Comments (1) | RELATED TICKERS: MSFT

While MSFT currently holds only 8% or so of the smart phone market, Android's 35% and growing market share should have MSFT investors salivating.

"Microsoft believes Google's Android user interface and underlying operating system infringes on its intellectual property."

As a result of this, Microsoft has an arrangement with HTC to collect $5 for every Android phone sold.  But this is just the first of many potential deals that MSFT is going to arrange with Android handset makers.  

"Microsoft is looking to receive between $7.50 and $12.50 per device from other Android handset makers in similar arrangements.

Considering that roughly 500,000 Android devices are activated on a daily basis, we're talking about a nice little revenue stream - that's likely operating expense-free.

 http://www.fiercewireless.com/story/rumor-mill-htc-pays-microsoft-5-every-android-phone-it-sells/2011-05-27

 http://www.fiercewireless.com/story/how-much-could-microsoft-reap-android-licensing-deals/2011-07-08

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