Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi. The acquisition included patents in voice communications, multimedia and cloud computing. The two companies announced the deal on Wednesday for their longterm partnership.
Despite financial details not being disclosed, it was reported that Xiaomi will pre-install Office and Skype on its phones and tablets. Patents should help the company expand internationally.
Huawei, Oppo and Vivo are gaining share rapidly while many other Android brands are losing share. According to IDC estimate, Xiaomi sold 10.9mn smartphones in 1Q16, down 41% QoQ and down 26% YoY. (vs global unit avg of just down 1% YoY) The patent acquisition
should help Xiaomi expand internationally without worrying about getting sued. The market may remember Xiaomi was sued by Ericsson.
