HTC to pay Apple $6-$8 for every Android phone sold

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‚Äôs long-term competitiveness.


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HTC may have to pay Apple $6-$8 for every phone sold
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