HTC Pays Microsoft $5 Per Android Phone, Says Citi
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LeoNatan
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Location: Ramat Gan, Israel 🇮🇱
PostPosted: Sat, 28th May 2011 01:52    Post subject: HTC Pays Microsoft $5 Per Android Phone, Says Citi
http://www.businessinsider.com/htc-pays-microsoft-5-per-android-phone-2011-5

Quote:
Microsoft gets $5 for every HTC phone running Android, according to Citi analyst Walter Pritchard, who released a big report on Microsoft this morning.
Microsoft is getting that money thanks to a patent settlement with HTC over intellectual property infringement.
Microsoft is suing other Android phone makers, and it's looking for $7.50 to $12.50 per device, says Pritchard.
We knew hardware companies were paying Microsoft, we just didn't know how much. (In October Steve Ballmer said, "Android has a patent fee. It's not like Android's free.")
Pritchard says we can expect more legal activity to pick up around Android in the coming months because "Google appears to have very little IP to defend itself with."
This is good for Microsoft which is about to enter the tablet market and is trying to make a dent in the smartphone market.
Another Citi analyst, Kevin Chiang, believes Android phone makers have 10%-15% operating margins, and Android tablet makers have operating margins of just 2%-3%.
As Microsoft, Oracle (which is suing over Google's use of Java), Apple, and others sue companies using Android, their margins take a whack for every settlement they make.
As the margins are crushed, it makes using a Microsoft-based operating system for tablets and phones much more attractive, argues Pritchard. (Unaddressed by Pritchard is how much Microsoft gets per device and if it's less than or equal to what Android-based devices end up costing.)
Of course, Microsoft has to prove it has a compelling software package to put on tablets.
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SpykeZ




Posts: 23710

PostPosted: Sat, 28th May 2011 02:02    Post subject:
Our patent system is such fucking garbage. It used to be for the small people who couldn't compete with big rich corporations.

How the tables have turned.


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Mister_s




Posts: 19863

PostPosted: Sat, 28th May 2011 02:05    Post subject:
Well the system sucks, but it's necessary. Without patent possibilities, big companies wouldn't put millions into research. It's the same in every academic field.
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LeoNatan
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Posts: 73207
Location: Ramat Gan, Israel 🇮🇱
PostPosted: Sat, 28th May 2011 02:12    Post subject:
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BearishSun




Posts: 4484

PostPosted: Sat, 28th May 2011 02:17    Post subject:
There are plenty of small people screwing everyone else due to patents as well. The case I had personal involvement is cone step mapping, which an optimized form of parallax occlusion.
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Werelds
Special Little Man



Posts: 15098
Location: 0100111001001100
PostPosted: Sat, 28th May 2011 11:29    Post subject:
SpykeZ wrote:
Our patent system is such fucking garbage. It used to be for the small people who couldn't compete with big rich corporations.

How the tables have turned.


Mister_s wrote:
Well the system sucks, but it's necessary. Without patent possibilities, big companies wouldn't put millions into research. It's the same in every academic field.


Patents: yes.
American way? FUCK NO.

SpykeZ already says it, the system in the US is garbage; 75% of the patents over there aren't valid in the US (EU doesn't recognise any software patents for example), and the US is the only place where Apple could make a claim like "We invented laying out icons on a square grid".

You can probably get a patent on the way you take a crap, as long as you do it "different" enough - that's the only real criteria they use.
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Werelds
Special Little Man



Posts: 15098
Location: 0100111001001100
PostPosted: Sun, 29th May 2011 13:00    Post subject:
Another good example.

I'm sure some of you have read about the shit with Lodsys threatening iOS developers about a patent regarding in-app purchases. Well, they're trying the same trick on the Android community now.

Again, American patent, has absolutely NO value outside the US and the US is the only place in the world where such a fucked up patent could ever be granted.
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