Here's How Apple Asked Samsung For $250 Million A Year

tim cook new ipad

Photo: Associated Press

Apple is suing Samsung in federal court for patent infringement, alleging that Samsung’s smartphones and tablets too closely imitated its iPhone and iPad.It didn’t have to come to this. The companies are big partners, with Apple paying Samsung billions of dollars a year for electronic parts.

As AllThingsD’s Ina Fried reported, Apple sent a proposal to Samsung in October 2010 that it pay $30 per smartphone and $40 per tablet in royalties.

Apple’s lawyers estimated the total cost, minus various discounts, would come to $250 million a year in 2010.

The document came up Friday in the course of ongoing testimony in the trial taking place in San Jose, Calif.

Boris Teksler, Apple's director of patent licensing, testified he first warned Samsung it was a copycat in August 2010. This proposal came a couple of months later.

Here's what phones looked like before the iPhone.

... but the point comes across. It's about the software.

Here Apple is making the case that the intellectual property it developed for the Mac applies to phones, too.

Smartphones sell for higher prices than ordinary cell phones.

Here comes the request for money.

Translation: We didn't just come out and sue Samsung because we're business partners.

Hey, Samsung came after us, Apple says.

A major vendor means a big target for royalties.

Here are the numbers: $30 per smartphone, $40 per tablet.

Apple wanted Samsung's patents, too.

Samsung can save money by making the right kind of devices—basically, anything but Android.

What a bargain!

One option: Keep selling the kind of clunky, old devices getting killed by the iPhone.

Or pay more for selling Android devices.

Here's the grand total: $250 million a year, in exchange for avoiding a lawsuit and keeping Apple's business.

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