Why Microsoft Makes $5 to $15 From Every Android Device Sold
 

Microsoft makes much more money from Android than Windows Phone. Every time you buy an Android smartphone or tablet, Microsoft is likely receiving $5 to $15. They likely make at least $2 billion per year from Android.

This financial agreement is all about patent royalties. Microsoft claims to hold software patents that Android infringes on, and they threaten lawsuits against Android device manufacturers until they settle.
How the Licensing Agreements Work

Microsoft has never officially revealed the details of their licensing agreements with Android device manufacturers. We’re piecing together all the information here from multiple sources.

We do know that Microsoft tells Android device manufacturers that Android infringes on their patents. To make things right, the device manufacturer needs to cut Microsoft in on the devices it sells. If the device manufacturer won’t enter into a patent licensing agreement, Microsoft will likely sue them.

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