HTC Review of News: HTC Pays $5 to Microsoft for Every Android Phone

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According to Citi analyst research, Microsoft is paid $5 for every Android smartphone that HTC sells.  The fee is due to a patent settlement agreement between HTC and Microsoft from April 2010.

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

Microsoft is making more money on Android than on Windows Phone.

HTC Android devices shipped is around 30 million.  If HTC paid $5 each to Microsoft, that adds up to $150 million Android revenues for Microsoft.

Microsoft sold 2 million Windows Phone licenses.   Estimating that the
license fee is $15/WP phone, that makes Windows Phone revenues $30 million to date.

HTC makes both Windows Phones and Android phones.  The most popular HTC Android phones right now are HTC ThunderBolt, HTC Inspire, HTC Merge and HTC Droid Incredible 2.  Many are anticipating the HTC Sensation and HTC EVO 3D. 

The Windows Phone, the HTC Trophy, was just introduced.