Taipei, Friday, April 28, 2017 06:56 (GMT+8)
sunny
Taipei
26°C
Digitimes Research: Microsoft patent fee cut to attract vendors to pre-install apps in Android products
Luke Lin, DIGITIMES Research, Taipei [Tuesday 14 April 2015]

According to Digitimes Research's latest findings from Taiwan's and China's smartphone/tablet upstream supply chain, in exchange for hardware players to pre-install its software applications such as Office, OneDrive or Skype onto their Android-based devices, Microsoft is offering them discounts on the patent licensing fees it charges their Android devices.

On March 23, Microsoft announced it had reached an agreement with 11 hardware players including Samsung Electronics, Dell and Pegatron Technology, for them to pre-install Office programs such as Word, Excel, PowerPoint and OneNote, as well as OneDrive and Skype onto their Android devices.

Based on Digitimes Research's understanding, these hardware players have all signed patent licensing agreements with Microsoft for their Android devices and need to pay fees for every Android-based product shipped.

With Android devices' shipments rising, Microsoft's incomes from the patent licensing fees have grown to substantial levels. To expand the usage of its applications in mobile devices, Microsoft has now decided to return some of the incomes to hardware players in exchange for their pre-installing its applications onto their Android products.

Google may find it difficult to ask its partners to reject the Microsoft policy, since price competition among Android devices is growing fierce, and profits from smartphones and tablets are shrinking gradually with some vendors even operating in losses. The market situation has made Microsoft's licensing fee discount a rather appealing offer for players that have been looking to cut down their costs to boost gross margins and the project is expected to attract more Android product vendors to join.

Realtime news
  • Foxconn plans to expand capacity in central China mainly for Amazon

    Before Going to Press | 8h 58min ago

  • Largan Precision to deal out 2016 dividend of NT$63.50

    Before Going to Press | 9h ago

  • AUO expects 2Q17 large-size panel shipments to shrink 1-5% on quarter

    Before Going to Press | 9h 1min ago

  • Silitech Technology suffers net loss per share of NT$0.36 for 1Q17

    Before Going to Press | 9h 3min ago

  • Radiant Opto-Electronics to deal out 2016 dividend of NT$4.50

    Before Going to Press | 9h 4min ago

  • Lenovo to end ZUK smartphone business

    Before Going to Press | 9h 5min ago

  • Gamania Digital Entertainment nets NT$0.34 per share for 1Q17

    Before Going to Press | 9h 6min ago

  • Firich Enterprises to deal out 2016 dividend of NT$1

    Before Going to Press | 9h 7min ago

  • MediaTek smartphone-chip shipments likely to fall in 2017

    Before Going to Press | 9h 8min ago

  • Macronix reports profit for 1Q17

    Before Going to Press | 9h 9min ago

  • GiONEE, Oppo, Vivo to launch smartphones with dual-lens cameras

    Before Going to Press | 9h 10min ago

  • FPCB maker Flexium 1Q17 profits fall

    Before Going to Press | 9h 11min ago

  • Macronix developing 3D NAND technology for SSDs

    Before Going to Press | 9h 12min ago

  • Gaming PC sales in North America in 2016 grow 25-30%

    Before Going to Press | 9h 13min ago

  • Faraday seeing growth in 28nm chip market

    Before Going to Press | 9h 14min ago

Pause
 | 
View more
UMC
Global AP demand forecast, 2017-2020
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.