Apple Could Generate $280 Million a Year from HTC Deal

Following the global patent settlement between Apple and HTC, the former is said to be set to pocket over quarter of a billion dollars from the deal.

Sterne Agee analyst Shaw Wu said he has spoken with industry sources who told him that Apple will generate around $6 to $8 in licensing fees for each smartphone HTC ships next year.

When factoring in his estimate of 30 million to 35 million shipments, Wu believes Apple will generate between $180 million to $280 million in licensing fees alone.

To add credence to Wu's report, a Wall Street Journal source has backed up the analyst's claim by stating they have knowledge of the deal. That said, the source didn't know any details pertaining to how much Apple will receive in the deal.

The unnamed source did, however, tell WSJ that HTC's executives are relieved that its two year battle with Apple is over. The settlement itself covers all current and future patents for a duration of a decade.

 

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  • DRosencraft
    This is why Samsung said they would keep fighting. It may be costly to fight these legal battles, but it probably isn't costing over a quarter BILLION dollars a year! That is a fairly big sum of money to be looking to make up in your revenue numbers ($70 million a quarter). Let's hope f or HTC's sake that this isn't quite accurate.
    17
  • bllue
    So 3-4+ billion dollars in licensing over 10 years. F that. Apple are the definition of patent trolls
    17
  • wildkitten
    ta152hApple is raping and pillaging competing companies, much like Microsoft did until they monopolized every market they could, and got slapped down with legal problems.So, we have Apple wanted to be what Microsoft was, Microsoft wanting to be what Apple is, and Google wanted to be everything Microsoft was, is, and ever will be, with a touch of Apple thrown in. I always thought I would love to see Microsoft brought to their knees, and while they are a failing company, it's not nearly as pleasing as I thought. There's always another company doing the same nonsense and trying to gain the same control. The only difference is Apple and Google make products people want (not always sure why ...), whereas Microsoft makes stuff people need, but don't really want, and now they're even trying to make us like it (like that rubbish called Windows 8). At least Intel makes spectacular products. The rest, not so much.

    Microsoft a failing company? A business that has never had a penny of debt liability is failing and still sells hundreds of millions of copies of it's product? I would hate to see what a company needs to do to be considered successful.

    Why is it so many of Tom's commenters so full of hyperbole these past few months?
    14
  • Other Comments
  • DRosencraft
    This is why Samsung said they would keep fighting. It may be costly to fight these legal battles, but it probably isn't costing over a quarter BILLION dollars a year! That is a fairly big sum of money to be looking to make up in your revenue numbers ($70 million a quarter). Let's hope f or HTC's sake that this isn't quite accurate.
    17
  • lengcaifai
    iOS and Android keep fighting over = windows phone 8 wins
    -3
  • bllue
    So 3-4+ billion dollars in licensing over 10 years. F that. Apple are the definition of patent trolls
    17