Android is Expected to Become Microsoft's Cash Cow

Microsoft has been struggling to find the next billion dollar annual revenue business, now seems to have found a mobile software. This new business is not Windows Phone, but Android - the current popular by rival Google's free mobile operating system. Over the past few months, Microsoft has many production Android phone and the PC platform, the company launched the "offensive", or to court, or convince them of certain features on the Android technology that contains part of the pay licensing fees. Microsoft believes that the company has patented these technologies.

Over the past few weeks, there have been a result of four companies that will sell Android Tablet PC and mobile phones to pay Microsoft licensing fees. According to reports, the smart phone maker HTC of Taiwan in April this year reached a licensing agreement with Microsoft, to produce an Android phone to pay Microsoft $ 5. Reuters quoted the South Korean media has reported that Microsoft and Samsung have begun negotiations on the license agreement. Samsung is the world's largest manufacturer of Android phones.

Microsoft, Google and Samsung declined to comment on. But Microsoft General Counsel Brad Smith (Brad Smith) has this issue in June, conducted in-depth discussion with reporters. Asked about Android is not Microsoft's new business, Smith replied: "We are pleased with the Android licensing agreement equipment manufacturers, we do not secretive on this issue."

On the HTC Android phone to produce a $ 5 payment to the Microsoft analyst report, Smith said: "This seems to be a fair price." He said, $ 5 less than Microsoft's Windows Phone Mobile Phone from each receive licensing fees. If Microsoft eventually make all Android phones and Tablet PC manufacturers to pay him $ 5 per device licensing fees, in view of the world's daily production of 500,000 new Android device (from Google's statistics), Microsoft this year will increased $ 913 million in revenue.

Market share will reach 40%

At Microsoft, any $ 1 billion in annual revenue the business will receive special attention. 2010 fiscal year, Microsoft's Entertainment and Devices Division (including the Xbox business and mobile software) to achieve sales of $ 8.1 billion, operating profit of $ 679 million. It is reported, including search, advertising and related services, including Google to bring mobile services to its annual $ 1 billion in revenue.

Google Android system nominally is complimentary, but the company will receive an exclusive license Android phone and tablet PC manufacturers sales-related agreements, within the limited period of time to provide the latest version of Android. Android is the world's fastest growing mobile market share, operating system, Google said that one billion people worldwide use the Android device. Market research firm IDC released a report, Android to the end of the year is expected to occupy 40% of global smartphone market.

Nokia Symbian smart phone system was a strong dominant position in the market, but now the market share is expected to decline to 21%, Apple will maintain a 16% share, while RIM will decline to 15%. With the launch of Windows Phone and Windows Mobile will continue to play the older generation of heat, Microsoft's market share increased slightly to 6%. Next few years, analysts believe Microsoft is still potential for rapid growth, because according to its cooperation agreement with Nokia, Windows Phone Nokia mobile phone will become the main platform. Nokia said it will start selling Windows Phone fourth quarter mobile phone.