Microsoft might have generated more revenue in the second quarter from royalties it collects on Android-based HTC phones than it did from issuing Windows Mobile licenses to other manufacturers, an analyst estimates.
Horace Dedieu of Asymco tweeted last week, "1.4m units at $15/unit yields $21m rev. for Microsoft from Windows Phone in Q2. 12m HTC units at $5/unit yields $60m from Android."
In 2010, Microsoft and HTC announced a patent deal that provided "broad coverage under Microsoft's patent portfolio for HTC's mobile phones running the Android mobile platform." According to reports that emerged this summer, Microsoft recoups $5 per HTC Android device, which may explain why HTC is developing proprietary Android apps.
Meanwhile HTC, which also makes Windows Phone 7 devices, reported sales of 12.1 million units in the second quarter, 23.7 percent higher than the year before.
Last week, reports from Canalys and comScore revealed that Microsoft's mobile market share was down in the second quarter, despite a promising first quarter.
HTC, one of the first Microsoft Windows Phone 7 manufacturers, may have to fork out even more in licensing fees now that it is being sued by Apple.
As we've seen numerous times, smartphone manufacturers are quickly piling on the patent infringement complaints against Android device manufacturers. Apple is aggressively pursuing an injunction over Samsung Galaxy devices, and is clearly trying to get HTC to pay up or get out.
For more, see What If Android Lost the Patent War?
For more information on HTC's Android phones, see PCMag's latest reviews for the HTC 7 Pro, HTC Status, HTC Merge, HTC Evo 3D, and HTC Sensation 4G.