The biggest news over the weekend is the patent settlement and a 10-year licensing deal between HTC and Apple. The two companies have engaged in a series of patent cases in various courts around the world. The latest development was unexpected. The monetary terms of the settlement is still undisclosed.
What You Need To Know:
- Sterne Agee analyst Shaw Wu shared the settlement figures based on “conversations with industry sources.” According Wu, Apple will get $6 – $8 for every Android-powered HTC device sold.
- Each year, HTC sells about 30 – 35 million Android smartphones. The patent settlement could generate $180 – $280 million in revenue for Apple. This figure may be significant for some, but this is just peanuts for Apple which earns $41 billion in net income during its previous fiscal year.
- HTC also pays $5 to Microsoft for every Android-based smartphone it sells. To sum it up, HTC now pays $11 – $13 per Android phone it sells.
- With its lackluster revenue over the past few consecutive quarters, analysts and investors have expressed concerns over the company’s long-term competitiveness.
Sources:
Here’s How Much Money Apple Is Getting From HTC For Settling Its Patent Lawsuits
Business Insider
HTC to Remain Under Pressure Despite Apple Pact
The Wall Street Journal
HTC may have to pay Apple $6-$8 for every phone sold
Android Community