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Microsoft’s patent royalties take a hit as Android market shifts - GeekWire

publish 2022-05-02,browse 2
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Photo by Trophy Geek, via Flickr.One counter-trend in a strong quarter for Microsoft was a decline in overall licensing revenue in its Devices & Consumer business. Licensing revenue fell nearly $400 million to $4.1 billion, from $4.5 billion a year ago. In its quarterly 10Q filing, Microsoft says a large portion of the difference was “a $176 million decline in Windows Phone revenue.”That phrase, “Windows Phone revenue,” does not mean what you might think it means. As the filing goes on to explain, the “Windows Phone revenue” decrease was “primarily due to lower per unit royalties based upon the mix of devices sold by our licensees.”Translation: Android makers are selling more lower-cost devices, which means Microsoft’s revenue from those sales declined. (Note: Post updated to clarify the effect of the changing device mix.)

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