That's because Xiaomi will install Microsoft Office and Skype on some of its Android phones, the companies said. "Beginning in September 2016, Xiaomi Android devices, including [the], Mi Max, Mi 4s, and Redmi 3, will come pre-installed with Microsoft Word, Excel, PowerPoint, Outlook and Skype applications," Microsoft said.
The company declined to detail financial terms of the deal but said it would first become active in China. Users will be able to use the free Office software features and upgrade to premium features with an Office 365 subscription if desired.
Office and Windows, Microsoft's two biggest sources of profit, historically have been tightly linked. But under the leadership of Chief Executive Satya Nadella,to a mobile market dominated by Apple and Google.
Under the deal, the companies are also licensing each other's patents. Xiaomi also agreed to buy nearly 1,500 Microsoft patents related to including wireless communications, video, cloud computing and multimedia, Microsoft said.
Update, 10:15 a.m. PT with Microsoft comment on some terms of the deal.