Microsoft Asks Samsung To Pay $15 Fee Per Android Phone
Microsoft has recently demanded that Samsung Electronics pay $15 for each smartphone handset it makes based on Google’s Android operating system. Samsung is expected to counter at $10 in exchange for a deeper allegiance to the Microsoft giant (e.g. make more windows phones).
Samsung had no immediate comment to the press, but we will see how this smartphone license fee pans out. To say that politics are involved in any industry is a huge understatement.
Just last year, Microsoft reached a deal with HTC where it receives royalty payments on each Android device sold. So what happens if Samsung doesn’t agree to Microsoft’s proposed fee?
Well, they could easily be sued for patent infringement by Microsoft, and lawsuits are very costly, messy, and look poor in the public eye. Also, when you factor in the cost of a typical Samsung smartphone, $15 will not break the company, but instead put a huge dampener on profits.
The fee also encourages Samsung to have more Windows phones, so Samsung makes more profits (in the short term), but might suffer more from sales in the long term, since the Android operating system is becoming increasingly popular among mobile users. You can still feel the deep rivalry between Microsoft and Google. Hey, I know Bing wasn’t a huge success, but isn’t it time to let it go, I mean the majority of the world still runs on Windows operating systems…