Apple Could Generate $280 Million a Year from HTC Deal

By Zak Islam
published

Patent settlement deal spans for a decade.

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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Zak Islam
21 Comments Comment from the forums
  • 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.
    Reply
  • lengcaifai
    iOS and Android keep fighting over = windows phone 8 wins
    Reply
  • bllue
    So 3-4+ billion dollars in licensing over 10 years. F that. Apple are the definition of patent trolls
    Reply
  • ta152h
    Apple 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.
    Reply
  • 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?
    Reply
  • jazz84
    wildkittenWhy is it so many of Tom's commenters so full of hyperbole these past few months?
    Well, we just finished a big election year in the US, so everyone here has spent the last WAY TOO LONG being whipped into a rhetorical fervor and led to believe that a politics-driven apocalypse is right around the corner. Wouldn't surprise me if that's what's got everyone in an uproar over just about everything now...
    Reply
  • ericburnby
    bllueSo 3-4+ billion dollars in licensing over 10 years. F that. Apple are the definition of patent trolls
    Another stupid comment of the day.

    Motorola is asking Microsoft for around $4 billion PER YEAR for less than 50 patents which are part of a standard (the least costly of all patents to license). And you think Apple asking for $1/4 billion per year for a whole pool of patents including non-standard patents (the most expensive type of patent to license) is outrageous?

    HTC was sabre-rattling all year long (just like Samsung with their "we'll never settle" rhetoric) talking about how they'll keep on fighting. In the end they licensed. And all the Android companies bashing Microsoft ended up signing license agreements too. I bet Samsung will also license.
    Reply
  • I wont buy HTC to support apple. NO.
    Reply
  • TeraMedia
    I would love to see an opinion piece by Zak to see where he stands on all of this Apple vs. X stuff.
    Reply
  • wemakeourfuture
    TeraMediaI would love to see an opinion piece by Zak to see where he stands on all of this Apple vs. X stuff.
    Unless he can copy and paste it from another source I don't think we will :P
    Reply