It's been widely accepted that Microsoft has been generating more profits from royalties from its rivals in the mobile industry than from its own Windows Phone. Equipped with patents, the company has been reaching around collecting its profits from others. Now they've reached a patent licensing agreement with Foxconn, linked to Google's Android and Chrome OS platforms. Unlike Apple who hopes to weed out its competitors, Microsoft is learning to make profit from its rivals little by little.
Microsoft has already succeeded in its intellectual property rights licensing program with HTC, Samsung, LG, and Acer. I think this is a pretty smart strategy that could potentially be dangerous for the Android market later when Microsoft gets too involved behind the scenes.
http://www.rethink-wireless.com/2013/04/18/microsoft-nets-foxconn-android-patents.htm
This is pretty big. I wrote about a similar article, except discussing Microsoft's acquisition of Chinese company ZTE. Between ZTE and Foxconn, Microsoft has greatly increased its already imperssive patent portfolio, and should soon start making hundreds of millions from patent royalties alone.
ReplyDeleteFurthermore, Foxconn offers some very tough competition. Indeed, it has an award-winning eCMMS business model.
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