Samsung decided to stop paying Microsoft for Android patents

[Ravynmagi]

Microsoft successfully got most of the Android manufacturers to pay for patents it believes the Android OS uses and I believe they've been paying Microsoft for each copy of Android on every phone they sell for a few years now.

But apparently after Microsoft bought Nokia. Samsung decided it didn't need to pay anymore. That buying another handset manufacture invalidated the cross licensing agreements between Samsung and Microsoft.

Samsung didn't go to court to prove this, they just stopped paying. So now Microsoft it taking Samsung to court to try to get them to start paying again.

http://www.theverge.com/2014/8/1/5960755/microsoft-takes-samsung-to-court-for-android-royalties

The Microsoft rep says this lawsuit won't hurt it's relationship with Samsung. Which is kinda funny because it seems the relationship is about as bad as it possibly can get. Samsung seems to have stopped making Windows Phone and Windows tablets. And seem to have really taken to Chromebook.

 

[master_shake_]

sounds like samsung is abandoning a sinking ship.

 

[s44]

If MS loses their Android revenue, they're so massively screwed... Go Samsung go.

 

[Deeko]

If MS loses their Android revenue, they're so massively screwed... Go Samsung go.

"So massively screwed".....you do realize that Microsoft makes in the realm of $5,000,000,000 in profit every quarter, yes? I'm sure they're happy with the money they pull in from Android licensing deals, but I think they'd somehow manage to pull through without it.

 

[Roland00Address]

"So massively screwed".....you do realize that Microsoft makes in the realm of $5,000,000,000 in profit every quarter, yes? I'm sure they're happy with the money they pull in from Android licensing deals, but I think they'd somehow manage to pull through without it.

This is a ballpark of how much Microsoft makes off of android 2 billion per year in 2013

http://www.zdnet.com/microsoft-is-m...ive-times-more-than-windows-phone-7000022936/

No money from OSes, windows (due to increase competition) and android, and the diminished use of office due to competitors getting better will start cause a profit spiral. Not saying Microsoft will not make, but they will be a lot less significant.

 

[Oyeve]

Ms is doomed.

 

[mmntech]

Samsung is a massive company that makes over four times the amount of revenue and thirty times the profit that Microsoft does. So any lawsuit is not going to be skin off their nose. That's why they've been able to duke it out with Apple in the long term over things that never should have been patented in the first place (rounded corners, slide to unlock).

Microsoft's problem is they've completely bungled the consumer electronics market. Windows 8 adoption has basically flatlined. Nobody wants a Surface or Windows Phone either. To top it off, the PlayStation 4 is supposedly outselling the Xbox One 3-1.

Their real failure was jumping on the smartphone market far too late. People were already locked in to iOS and Android's ecosystems, and MS failed to offer a product that was substantially better than either of those two. Poor marketing didn't help either.

This latest patent war is them fighting over the scraps left over from the big boys.

 

[Unoid]

Samsung is a massive company that makes over four times the amount of revenue and thirty times the profit that Microsoft does. So any lawsuit is not going to be skin off their nose. That's why they've been able to duke it out with Apple in the long term over things that never should have been patented in the first place (rounded corners, slide to unlock).

Microsoft's problem is they've completely bungled the consumer electronics market. Windows 8 adoption has basically flatlined. Nobody wants a Surface or Windows Phone either. To top it off, the PlayStation 4 is supposedly outselling the Xbox One 3-1.

Their real failure was jumping on the smartphone market far too late. People were already locked in to iOS and Android's ecosystems, and MS failed to offer a product that was substantially better than either of those two. Poor marketing didn't help either.

This latest patent war is them fighting over the scraps left over from the big boys.

Good analysis.

MS could still gain marketshare and reputation if they'd open up their OS for modders. Custom Roms, Open source drivers, etc.

 

[Deeko]

Samsung is a massive company that makes over four times the amount of revenue and thirty times the profit that Microsoft does. So any lawsuit is not going to be skin off their nose. That's why they've been able to duke it out with Apple in the long term over things that never should have been patented in the first place (rounded corners, slide to unlock).

Microsoft made 4.7 billion in profit last quarter - which is lower than usual due to the fact that Nokia makes a loss. Samsung made 6.1 in profit. The last time I checked, 6.1 is not 30x 4.7, so unlike the last poster, I will have to disagree that this was well said.

This is a ballpark of how much Microsoft makes off of android 2 billion per year in 2013

http://www.zdnet.com/microsoft-is-m...ive-times-more-than-windows-phone-7000022936/

No money from OSes, windows (due to increase competition) and android, and the diminished use of office due to competitors getting better will start cause a profit spiral. Not saying Microsoft will not make, but they will be a lot less significant.

Microsoft made what, $24 billion in profit last fiscal year? Even if they lost all of that $2 billion in Android licensing fees, that wouldn't exactly sink them, and they still make hordes of money on OSes. You do know that they still make a lot of money selling Windows on desktops, right? And that that isn't their highest profit-generating division anymore, right?

I know, we're on the mobile devices subforum so people tend to forget there are other sectors, and I know, a lot of you have this silly hatred of every company that doesn't make your favorite gadget, but whether you'd like to admit it, Microsoft as a company is still doing very well and not going anywhere anytime soon. They could completely abandon mobile (which they won't) and they'd still pull through...crazy to think, I know.

 

[thedosbox]

My takeaway from this thread is that some Samsung "enthusiasts" can't read an earnings report.

 

[Dari]

Good analysis.

MS could still gain marketshare and reputation if they'd open up their OS for modders. Custom Roms, Open source drivers, etc.

That's not a good analysis. It's flawed. Microsoft was among the first companies in the smartphone arena. Sad how many people forget Windows Mobile (I used to own one). It's just that, when Apple came out with the iPhone, it was a million times better and, like Nokia, Microsoft took its sweet sweet time in coming out with a competitor. By the time they did, Apple had a natural competitor in Android and MS was an afterthought.

 

[Imaginer]

Microsoft's problem is they've completely bungled the consumer electronics market. Nobody wants a Surface or Windows Phone either.

This statement is wrong for me (and others would agree). In fact, Samsung was FIRST with a Slate Series 7 and later a ATIV 700T both of which I had looked well before the Surface Pro came out. There are reasons why I haven't jumped with either of Samsung's offerings - because they are devices that still had caveats, namely that to stow the keyboard, it would be a detach and attach operation, compared to folding back.

I wouldn't say COMPLETELY bungled. Because if you look, there are ones out there that do support the form and UI and functionality in software.

Also...

MS could still gain marketshare and reputation if they'd open up their [OS for modders. Custom Roms, Open source drivers, etc.

This isn't an issue for me. Because if I wanted to program for it, there are many sources already to be able to create your own programs to work with Windows since Windows ever, if there is a function that doesn't exist to leverage - programs can be open while running on things as Windows or OSX.

I hate to say this, but if this is a reason why some are not interested in development in Windows Phone, shame on the developers who have this attitude. Your program's own code can be open to share, that can still be open in working with any OS, closed or not.

Put it in a metaphor...

Do I really need deep access when the tools are there in simple access of abstraction? Do I really need to completely rearrange a car's dash, steering wheel, and shifter? Do I really need to dismantle a house's framing and studs to space studs 18.5 inches away instead of 16 inches for the entire house because I do not agree with a standard? Do I need to waste time in some not tightly managed, easily discernible, open documentation to solve something trivial as how an OS looks?

And, people already can make custom programs to work in Windows, game mods, etc.

 

[JohnDeb]

sounds like samsung is abandoning a sinking ship.

good view :thumbsup:

 

[gorcorps]

Put it in a metaphor...

Do I really need deep access when the tools are there in simple access of abstraction? Do I really need to completely rearrange a car's dash, steering wheel, and shifter? Do I really need to dismantle a house's framing and studs to space studs 18.5 inches away instead of 16 inches for the entire house because I do not agree with a standard? Do I need to waste time in some not tightly managed, easily discernible, open documentation to solve something trivial as how an OS looks?

And, people already can make custom programs to work in Windows, game mods, etc.

That's not a metaphor, it's an analogy... and a bad one at that because there are A TON of people that like to customize their cars.

 

[AyashiKaibutsu]

That's not a good analysis. It's flawed. Microsoft was among the first companies in the smartphone arena. Sad how many people forget Windows Mobile (I used to own one). It's just that, when Apple came out with the iPhone, it was a million times better and, like Nokia, Microsoft took its sweet sweet time in coming out with a competitor. By the time they did, Apple had a natural competitor in Android and MS was an afterthought.

The problem was when the iPhone came out; they essentially left the mobile market completely until they had Windows 7 phones... I actually liked Windows Mobile (I bought a HTC 6800 when the iPhone was out). If they continued making beefier windows mobile phones and more organically transitioned to modern smartphones instead of abandoning all their prior customers they might have been in better shape.