Earlier quoted context omitted.
HTC is paying $5 per phone, but they also get protection against Apple. I don't think HTC would've signed the deal with Microsoft, if it wasn't for the Apple lawsuit.
I figure though HTC's profit per phone is likely on the order of $20 or less? (I'm guessing here but I should be in the ballpark.) Thus $5 per phone is hugely significant.
http://www.isuppli.com/Teardowns/News/Pages/HTC-Droid-Incred...