Android Central

Though the most HTC would say about their patent settlement with Apple was that they didn't expect the process to "have an adverse material impact on the financials of the company," analyst Shaw Wu says they may be paying upwards of $6 - $8 per device in licensing fees starting in 2013. This would span both Android and Windows Phone devices, and could amount to between $180 and $280 million in fees. That's not an awful lot to Apple, but sure is more substantial than HTC was letting on. 

Though Apple isn't doing quite as well in their patent battles against Samsung lately, it's understandable that they may be less willing to settle with a manufacturer in a much more powerful position than HTC. HTC has been hurting for some time now, and if these licensing fees turn out to be true, it won't do their balance sheet any favors. 

Of course, analysts are well-known for their imagination, so take the $6 - $8 figure with a grain of salt. Is there any chance that Apple and HTC actually resolved their patent complaints without money changing hands? Maybe they reached some sort of cross-licensing deal? 



Reader comments

HTC might pay Apple $6-8 per device in patent settlement


i thought it was cross patents? means they can use each others patents. i would think that means no money is exchanged? :/

They may also be paying downwards of $6-8 per device, or even $0 per device or Apple may be paying them $3 per device.

This analysis is as pointless as prediction of the next "facebook".

Please stop saying grain of salt, or any variation of that phrase. Please please please. It makes my brain bleed...

Its a common enough phrase, dating from Pliny the Elder. You may have heard of him.

What's your problem with it?

This is nothing more than the same smokescreen game Microsoft played. At one point no one knew what was being paid in those patent deals. In most we still don't know. But some analyst came up with some number and everybody ran with it. You're doing the same thing here... helping spread this number that will become fact through nothing more than repetition. Don't fall for it

Analysts have ways of finding this stuff out after a while. Its hard to hide vast sums of money forever, no one in this country can keep a secret for long.

Admittedly any knowledge at this date is unlikely. But don't discount the possibility that Apple beat up on a company on the rocks until they were forced to call uncle.

< GrammarNazi > I don't like that 'Apple' appears more than 0 times in the heading... let alone twice. < /GrammarNazi >

My understanding was that there may have been some money exchanged up front (i.e. one time payment), but no royalties, though I can't recall right now where I read that (some place generally reliable, though).

Maybe HTC is paying Apple a per-device fee; maybe they're not. The point is that the deal, according to HTC, won't "have an adverse material impact on the financials of the company. If HTC is paying Apple some money, it's probably offset by at least one of the following: 1) per-device fees on iPhones sold, 2) reduced legal costs because they don't have to worry about Apple suing them anymore, 3) reduced R&D costs because they don't have to engineer around Apple's patents anymore, and 4) Apple just handing them a large check.

At any rate, this is probably good for the industry, as now Apple has one less Android OEM to patent troll, HTC has one less big unknown in their financials, Apple might just start innovating again in their software, and HTC can just MAYBE start advertising their great products themselves (i.e. not leaving it to the carriers).