Posted On November 7, 2013 By In Microsoft News With 2031 Views

Analyst: Microsoft Is Making $2 Billion Per Year in Revenue From Android

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In a note to investors, Nomura analyst Rick Sherlund (via BusinessInsider) suggest that Microsoft is generating $2 billion per year in revenue from Android patent royalties.

According to Sherlund, Android revenue has a 95% margin, helps Microsoft masked failings in other areas such its mobile and Xbox divisons. Sherlund estimates that Microsoft is losing nearly $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform, the report said.

Investors are blind to Xbox’s struggles, says Sherlund, because they are “concealed by the hugely profitable Android royalties.

And Google is blind to the fact that Android is not free.

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Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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