Apple will get $6-$8 for every Android-based HTC phone sold, says Shaw Wu, an analyst at Sterne Agee.Late Saturday night Apple and HTC announced a patent settlement,and a 10-year licensing deal. The terms of the settlement were not released. Wu’s figure is based on “conversations with industry sources.”
HTC sells 30-35 million Android smartphones annually, so it will generate $180-$280 million in annual revenue for Apple. Since there is no almost cost associated with that revenue, it should be pure profit. But, Apple made $41 billion in net income during its last fiscal year, so it’s not like this HTC money means much.
HTC also reportedly send $5 to Microsoft for every Android-phone it sells. This means it’s paying $11-$13 per phone for patents. Not that bad a deal, really.
We’re not sure why Apple gave up its fight. Maybe Tim Cook looked at the recent Samsung trial where Apple was awarded $1 billion, and thought, “That’s the best we can do?” By settling with HTC, Apple could get more money over a 10-year period, with less hassle.
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