Microsoft could be making $2 billion on Android

Microsoft may have its own mobile operating system in the form of Windows Phone, but that doesn’t mean it can’t make a little bit of money out its competitor, and if the latest report is to be believed — it’s making quite a bit of wonga, with the number reaching a possible $2 billion.

According to a note from Rich Sherlund, an analyst for Nomura, Microsoft is using its $2 billion in revenue from Android and using it on porducts that don’t make the company much money — with Xbox and Windows Phone being the two major benefactors. Sherlund also notes that the money is bolstering the Entertainment and Devices division, and without the Android royalty the division would be making a loss.

Micrsoft makes its money from Android through licensing deals with major Android OEMs, with earlier reports estimating that the company makes between $1 to $8 per Android device shipped.

Source: NDTV