Manufacturers of Android devices receive a discount from Microsoft on patent licenses when she software like Office, OneDrive and Skype for install on their devices. According to research from the Taiwanese DigiTimes
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Microsoft has patents on technologies used in the Android operating system. Manufacturers must therefore pay using Android licensing fees to Microsoft. Due to the rapid growth in the number of Android devices, the licensing revenues of the company have grown considerably.
In an effort to use its applications to allow mobile phones to rise, Microsoft has decided part of that income to give back to hardware manufacturers in exchange for the installation of its applications on Android products.
Late last month, the company announced that it had entered into an agreement with eleven hardware players on the installation of its apps, including Samsung, Dell and Pegatron. It is expected that more players will follow.
Although Google will not be happy with the action of Microsoft, the company behind the Android system will do little to not allow manufacturers go to the offer . Price competition with Android devices is growing rapidly, thus increasing profits decline per unit. For many players the rebate from Microsoft will be very attractive to keep down costs and increase profit margins
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