Linked by Thom Holwerda on Thu 7th Nov 2013 10:04 UTC, submitted by mbpark

Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company.

He estimates that the Android revenue has a 95% margin, so it's pretty much all profit.

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash.

Microsoft has not written a single line of Android code, yet rakes in the profits through scummy software patents. Crime does pay.

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RE[3]: Comment by Nelson
by mbpark on Thu 7th Nov 2013 14:00 UTC in reply to "RE[2]: Comment by Nelson"
Member since:


That just proves that you have common sense when it comes to investing.

This will not end well for the OEMs. Google can pay and will. Many of them run thin margins. Rockstar, Nokia, and other patent holders will attack them and knock out many of the smaller players like Pantech.

This will have the net effect of causing cross-licensing with the big players like LG and Samsung to alleviate the costs, and the removal of smaller OEMs.

This is market consolidation.

Reply Parent Score: 4

RE[4]: Comment by Nelson
by tylerdurden on Fri 8th Nov 2013 00:46 in reply to "RE[3]: Comment by Nelson"
tylerdurden Member since:

Hey, how do you get the cool orange bar? ;-)

Reply Parent Score: 1