Xiaomi Smartphone (Photo : Twitter)
Microsoft and Xiaomi have reported a deal that will make it easier for the Chinese smartphone company to expand into Western markets. Xiaomi is purchasing Microsoft patents, and a new cross-licensing deal will bundle the software giant's apps on the tech startup's Android phones.
Wang Xiang is Xiaomi's senior vice president. He stated that the deal is a big collaboration between the two companies.
An interesting part of the official announcement is that Xiaomi is buying 1,500 patents from Microsoft instead of licensing them.
The patents include voice communications, multi-media, and cloud computing. In the past Microsoft has licensed patents to Android Original Equipment Manufacturers (OEMs) and often allows them to bundle future devices with Microsoft apps. However, this is the first time patents have been sold.
The press release notes that in September Xiaomi Android devices will be installed with Microsoft Word, Excel, PowerPoint, Outlook, and Skype, according to Ars Technica. They include Mi 5 and Redmi Note 3.
Xiaomi has already partnered with Microsoft to experiment with Windows OS. For example, the two companies offered a Windows "conversion" for Xiaomi Mi 4, and the company's Mi Pad 2 tablet can be bought with Windows 10.
Xiaomi already sells smartphones in Brazil, China, Hong Kong, India, Indonesia, Philippines, Singapore, and Taiwan. The company has plans to expand globally. Xiaomi already has an accessory store in the United States.
However, selling smartphones in Western markets would involve legal battles over patents. Last year Xiaomi filed for 3,700 patents and the company's teaming up with Microsoft results in one less legal enemy.
In the long term Xiaomi can save a copious amount of money by purchasing Microsoft patents instead of licensing them. For example, Samsung pays Microsoft $1 billion per year for its Android phones and tablets.
In related news, Xiaomi's Mi Band 2 fitness tracker will be officially launched in a few days but the device has already showed up on some online stores, according to TechnoBuffalo. It seems to be priced at about $50. Features include a touchscreen display; sensors for tracking steps, heart rate, and sleep; and long battery life.
Here's a preview of Xiaomi Mi 5:
