These are pretty rough times for Samsung. Besides their well known fight with Apple, Samsung is now facing Microsoft in a struggle that gets bigger from day to day and threatens to end the mere presence of the Galaxy series smartphones in the U.S. So what are Microsoft’s demands? As you probably know, Microsoft has a rich portfolio of patents and they would like the South Koreans to pay 15 dollars for each Android phone they have manufactured since the violation of such patents.
HTC was the first phone manufacturer who first caught the attention of Microsoft and now they are coming after Samsung. The Taiwan-based company agreed to pay $5 for its Android handsets and Samsung is negotiating for $10 in order to conclude a strategic alliance. So why does Samsung and HTC seem to have these never ending problems with Microsoft? The answer is pretty simple: Android.
More specifically, you should, probably already know the fact that the Android OS is Linux based. Microsoft says that Linux violates their rights and their patented technology. It would have been more logical if Microsoft had sued Google for delivering the Android operating system, but it is not Google who makes money directly from the operating system. Yes, you have guessed it. The companies that produce mobile phones with this operating system are the big players that spin the big bucks.
In the end, it is a profitable business for Microsoft who manages to gather hundreds of millions of dollars just for the patents it holds. And now it’s time for a little math test. How much money in Microsoft’s pockets does 3 million sold Samsung Galaxy S II units mean? And the correct answer is… 45 million dollars! It is a big revenue opportunity for Microsoft and they are making sure they are taking full advantage.
Android phone
More specifically, you should, probably already know the fact that the Android OS is Linux based. Microsoft says that Linux violates their rights and their patented technology. It would have been more logical if Microsoft had sued Google for delivering the Android operating system, but it is not Google who makes money directly from the operating system. Yes, you have guessed it. The companies that produce mobile phones with this operating system are the big players that spin the big bucks.
In the end, it is a profitable business for Microsoft who manages to gather hundreds of millions of dollars just for the patents it holds. And now it’s time for a little math test. How much money in Microsoft’s pockets does 3 million sold Samsung Galaxy S II units mean? And the correct answer is… 45 million dollars! It is a big revenue opportunity for Microsoft and they are making sure they are taking full advantage.
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