Microsoft Is Making More Money On Android Than Windows Phone 7

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I know it sounds funny but it’s true. No, Microsoft isn’t selling Android phones or anything like that. The fact is that they are making more money from licensing fees from Android phone manufactures than their very own mobile OS Windows Phone 7.

Apparently these patent wars are really worth all the trouble. Microsoft owns enough patents that they’ve got other phone manufacturers, specifically HTC, doling out fees. The one who owns the most patents, earns the most in fees. Licensing agreements made between patent owners and those who want to use the patented technology end up making companies, like Microsoft, a comfortable amount of money.

Industry analyst Horace Dediu estimates that Microsoft made $150 million during the first quarter of 2011 simply on the sale of Android handsets. Compare that to $30 million which is what Windows Phone 7 handsets earned them. The second quarter doesn’t look much different with earnings from Android at $60 million and earnings from Windows Phone 7 at $21 million.