"Cash cow"? Microsoft intends to stop WP royalties

Source: Internet
Author: User
Keywords Microsoft patent fee Cash cow
[Guide] Google uses the powerful Android power to force Microsoft to the "dead end" of the road. Tencent Science and Technology snow March 14 compiled news that Microsoft will give up to two Indian smartphone manufacturers to charge the normal circumstances should be levied on the Windows Phone operating system royalties. According to the Times of India, Microsoft is preparing to take such measures, which means the company will give up one of its biggest "cash cows". For the software giant, this is a radical change in concept, but in addition the company has no choice. That is because Google is using the power of its Android operating system to force Microsoft into a dead-end "dead end". Microsoft became Microsoft because the company would charge manufacturers royalties, allowing the latter to use their Windows operating systems on desktops. The company is trying to do the same thing in the Mobile world, charging the handset makers 10 to 20 dollars in royalties per phone. But Microsoft's "dream" has been hit head-on by Google. Google offers its Open-source mobile operating system Android for free, which has damaged the business model of Microsoft's Windows Phone. Android was born earlier than Windows Phone and already dominates the global mobile operating system market. The current situation is that Android is popular with consumers, while Windows Phone is frustrated in the consumer market, which means there is little incentive for handset makers to pay Microsoft to use the Windows Phone system. In addition to the two Indian companies mentioned above, there are rumors that HTC, Sony and ZTE will also be given the benefit of not having to pay Microsoft for Windows Phone royalties. In today's smartphone market, the intensity of competition has reached an unbelievable level. Despite all the manufacturers, only Apple and Samsung are actually able to make money in the market. For other smartphone makers, the margins have been as thin as the blades. Therefore, in the existing free Android system environment, but to pay Microsoft royalties to get access to Windows Phone, which is meaningless to manufacturers. That's why Android dominates the global smartphone market. Microsoft once controlled 95% of the global computing market, but today, Microsoft's share of 24%,android is as high as 60%. At this year's Mobile World Congress (MWC), many of China's low-cost smartphone makers are using Android, and Windows phone has a few lizhuizhide in its camp for the emerging-market makers. In this case, in addition to stopping charges for Windows Phone royalties, Microsoft has indeedHave no choice. Windows Phone business has never been a huge business for Microsoft, but stopping royalty charges for Windows Phone not only means less revenue, but it also means the company may be on the slide. The reason for this is that if Microsoft stops charging Windows Phone royalties, will it stop charging for Windows operating system fees for tablets? After all, Google dominates the market for tablet operating systems and is also free. Further, if Microsoft stops charging for the Windows operating system of a tablet computer, will it also stop charging for PC Windows? After all, Microsoft itself has said that tablets are also a personal computer, but its "shape factor" is new. In other words, this is likely to mark the beginning of the end of Microsoft's Windows business. Over the years, people have been predicting that this is going to happen, but this one may really be coming. However, the fall of a "cash cow" may not be all bad for Microsoft. The reason for this is that it will force the company to find new ways to make money from its products. Microsoft will have to find a brand new perspective as a market breakthrough that could lead to something "bigger and better". Satia Nadra Satya Nadella, Microsoft's new chief executive, said in a recent discussion: "When you have a business worth 70 billion of dollars, you may feel that a business of 1 million dollars is insignificant." But the latter may be the greatest thing. "There are many ways to read this Nadra, but most likely, it highlights his willingness to think differently about the future of the company," he said.
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