Windows Phone Revenue Underwhelms

[Adan Galvan]

<div class='os_post_top_link'><a href='http://blog.seattlepi.com/microsoft/2011/07/29/microsofts-windows-phone-revenue-613-million-at-the-very-most/' target='_blank'>http://blog.seattlepi.com/microsoft...-the-very-most/</a><br /><br /></div><p>&nbsp;<img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/wpt/auto/1312338068.usr681.jpg" style="border: #d2d2bb 1px solid;" /></p><p>The supposed bad news keeps on flowing about Windows Phone. First there was the news of a continuing decline in market share, and now we hear that the revenues from Windows Phone could be somewhere in the ballpark of $600M. Although this sounds like a small amount, Microsoft has said time and again that they are in this for the long run. Enthusiasm for Windows Phone is reaching an all-time high as bloggers and writers have given near universal acclaim for Mango. Further, Microsoft has been known to be stubborn when entering a new market. The major negative with this strategy seems to be that the mobile phone market is evolving faster than anyone could have possibly seen just five years ago. Regardless, Seattle PI is entitled to their opinion. If you are new to Windows Phone, I can confidently say that this will not be another KIN situation.</p>

[soho_1]

It's nowhere near $600 million. That implies at least 40 million Windows Phone licenses. $600 million includes Microsoft hardware and everything other than Xbox in the division.

Microsoft's revenues from Windows Phone/Mobile licensing is probably in the $150 million range.

[benjimen]

This info isn't exactly a suprise: http://goo.gl/WuxF

[soho_1]

According to Canalys, 1.4 million Windows Phone licensed devices shipped in Q2. If Microsoft obtained $15 per phone (an upper bound on license revenues cited by multiple sources) then Microsoft revenues from the platform were $21 million last quarter.

[soho_1]

I'd also add that since Microsoft has licensed IP to HTC for its Android phones at a price of about $5/unit, then Microsoft's revenues from that license are probably $60 million for the quarter (HTC sold over 12 million Android phones last quarter).

That means without any other Android licensees than HTC, Microsoft gains at least three times the revenue from Android than it does from Windows Phone.