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Microsoft Earns $444 Million Yearly from Patent Licenses and Android Rev Share Deals

Microsoft earned a hefty annual sum from its patent licenses, particularly from Google’s smartphone OS platform Android, according to a new study.

The report, which shed more light onto this lucrative business model of the Windows maker, was published by the analysts at Goldman Sachs. According to the report, the company makes as much as $444 million a year from Android alone.

Earlier this week, the software giant had signed another licensing deal with the South Korea based tech behemoth Samsung Electronics, which made it mandatory for the latter to share a part of revenues earned from its Android powered devices.

And its not just Android, Microsoft also earns some serious money from the open source platform Linux.

The Goldman report also estimated that Microsoft was earning anywhere between $3-$6 from each Android device sold.

“Sounds good for Microsoft, but really, it's an empty victory. Microsoft's revenue for fiscal 2012 is estimated to be $75 billion. Its EPS is estimated to be $2.86,” noted Jay Yarow of Business Insider in his report (opens in new tab).