Alnoor M Peermohamed
11:20 27th Mar, 2014
Microsoft Will Earn A Cut On Every Android And Chrome OS Device Dell Sells
Talk about beating the competition with any means possible.
Dell and Microsoft have signed a deal that allows the Redmond company to earn royalties on every device shipped with Android and Chrome OS. In return Microsoft will pay its dues for using some of Dell's intellectual property in the Xbox gaming console.
“Microsoft Corp. and Dell announced a patent licensing agreement allowing the companies to share technology and build on each other’s innovations,” said Microsoft in a statement.
According to Tech Crunch, Dell is likely to have got a discount on its royalty payment to Microsoft as it has some IP in relation to the surface area to the Xbox.
“Through this arrangement, Microsoft and Dell have agreed to license each company’s applicable intellectual property related to Android and Chrome OS devices and Xbox gaming consoles,” said the company added.
Wile turning some of the largest electronics OEMs into its paying customers is an old Microsoft trick, it does show how the company is attempting to undermine Google's entry into the traditional PC market. Microsoft earning a cut from every Android and Chrome OS device means either manufacturers are earning less profits or customers are having to pay more.
Whichever way you look at it, the move creates a win-win situation for Microsoft. Firstly the company is indirectly making its own products seem more attractive by bumping up the cost of rival devices running Chrome OS and Android. Second, and more ironic, is that Microsoft is simply cashing in on Google's success.
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