Android Generates More Money For Microsoft Than WP7 Does

With Microsoft’s numerous revenue streams, you would expect their mobile operating system, Windows Phone 7 to be near the top of the list. A funny fact has come to light, being that Android actually earns Microsoft more money than WP7 does.

How does this happen… you may be asking? Well it all comes down to behind the scenes legal agreements that mean that each time HTC shift a smartphone, they have to pay money to Microsoft. Electric Pig has reported that $5 is paid to Steve Ballmer and his organisation each time an HTC handset is sold, this comes after a legal battle.

Microsoft and Android both supply HTC with their software and the agreement between both parties came about after HTC accepted an intellectual property lawsuit with Microsoft in April 2010. OS News has reported that Microsoft is currently suing other Android phone makers, looking for $7.50 to $12.50 per device.

They have been accused of “bullying” other phone makers and charging what Steve Ballmer is reportedly calling a “Android patent fee”. The maths shows that Microsoft has made about $150 million from 30 million HTC smartphones. Where WP7 has only made an estimated $34.5m. Do these figures underline the power of Android or the weakness of Windows Phone 7? Tell us what you think by leaving a comment.