Goldman Says Microsoft to Reap $444 Million Annually from Android Licenses

Goldman Sachs's tech analyst team believes Microsoft will generate $444 million in revenue from Android patent deals for fiscal year 2012 which runs from July 1, 2011 to June 30, 2012.

Goldman was able to determine this number by performing some very complex mathematical computations which were as following:

  • Microsoft is getting $3-$6 per Android device sold.

  • Multiply the above price point by the number of Android devices sold.

  • Arrive at a final value of approximately $444 million.

So who has settled with Microsoft?

Samsung, HTC, Acer have settled with Microsoft to end the patent dispute by paying the above royalty fee of $3- $6 per Android smartphone device they manufacture.

Does this $444 million seem like a lot of money to Microsoft? Actually it is pennies when you consider Microsoft will pull in $75 billion in 2012 fiscal year.

Microsoft's true business is computers and the money received in royalties is not what the Redmond company is concerned about, they want to preserve that $75 billion nest egg.

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