For past few weeks Microsoft has been inking deals with several manufactures over Android royalties (HRC, Itronix, Velocity, Onkyo, Wistron). Now, Microsoft is going after Samsung, as the Redmond company is asking the Korean gaint for $15 per Android handset sold by the company.
According to Reuters, Microsoft has demanded that Samsung Electronics Co Ltd pay $15 for each smartphone handset it makes based on Google Inc's Android operating system as the U.S. software giant has a wide range of patents used in the mobile platform, local media reported on Wednesday. It is also beign reported, that Samsung would likely seek to lower the payment to about $10 in exchange for a deeper alliance with Microsoft for the U.S. company's Windows platform , the Maeil Business Newspaper quoted unnamed industry officials as saying.
Analysts forecast Samsung, the world's No.2 handset maker, to have sold about 19 million smartphones in the April-June quarter, with the dominant position running on Android. It is widely expected to emerge as the No.1 smartphone maker, replacing Nokia's more than 10-year reign.
Samsung's Galaxy S II, successor to its flagship Galaxy S smartphone, which runs on the Android platform, has sold more than 3 million units since its debut in late April.
These high royalties are a backdoor method to persuading manufactures from producing Android handsets. If Microsoft is successful, we could begin to see more Windows Phone hardware in the marketplace as it could become cheaper for manufactures to adopt Windows Phone rather than Android.
Samsung had no immediate comment.