It seems weird to be talking about Microsoft selling licenses to build Android tablets considering Microsoft has its own operating systems that fight Android. Still, that is exactly what Microsoft is doing since it licensed patents from another company that cover tech used in many Android devices.
Over the last week, there have been several big mobile manufacturers signing up with Microsoft to license the patents. Today, another licensee was announced with Onkyo signing up. Onkyo has previously sold an Android tablet in Japan, and the license deal covers tablets it has sold.
Microsoft’s Strategic Licensing Moves
Microsoft’s decision to license patents for Android devices might seem counterintuitive at first glance. However, this strategy allows Microsoft to profit from the booming Android market without directly competing with its own Windows Phone operating system. By securing licensing deals, Microsoft ensures a steady revenue stream from Android manufacturers. According to reports, Microsoft may be getting as much as $5 per device in licensing fees from makers. This would mean Android is more profitable for Microsoft than Windows Phone.
The licensing agreements also help Microsoft protect its intellectual property. By licensing patents, Microsoft can mitigate the risk of patent infringement lawsuits and foster a cooperative relationship with other tech companies. This approach has proven to be a lucrative business model for Microsoft, as it capitalizes on the widespread adoption of Android devices.
Onkyo’s Role in the Android Market
Onkyo, a company known for its high-quality audio equipment, ventured into the Android tablet market with its previous offerings in Japan. The licensing deal with Microsoft covers the tablets Onkyo has sold, ensuring that the company complies with patent regulations. While it is unclear if Onkyo will release more Android tablets in the future, the licensing agreement positions the company to do so without legal hurdles.
Onkyo’s entry into the Android tablet market highlights the diverse range of manufacturers adopting the Android platform. From audio equipment companies like Onkyo to major smartphone manufacturers, Android’s flexibility and open-source nature make it an attractive choice for a wide array of businesses. This diversity contributes to the platform’s global dominance and widespread consumer adoption.
The financial implications of these licensing deals are significant. For instance, if Microsoft receives $5 per device, the cumulative revenue from millions of Android devices can be substantial. This revenue can be reinvested into Microsoft’s own product development, research, and innovation, further strengthening its position in the tech industry.
Take a look at our article on Android vs iPhone to see which smartphone and mobile platform is best for you.
In conclusion, Microsoft’s strategy of licensing patents for Android devices is a savvy business move that allows the company to benefit from the success of the Android platform. By securing licensing deals with manufacturers like Onkyo, Microsoft not only generates significant revenue but also protects its intellectual property. This approach underscores the complex and interconnected nature of the tech industry, where companies can simultaneously compete and collaborate to drive innovation and growth.
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