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Here is why HTC doesn't pay a cent to Apple

Remember those statements from yesterday that HTC has to pay Apple around $6-$8 for each and every Android smartphone they sell? Well it turns out that this was complete bogus
Since Sunday I've been in talks with various sources here in Taipei. IP lawyers, Industry experts and people close to HTC and none of them could confirm anything that came even close to what Sterne Agee analyst Shaw Wu predicted. In fact most people called him out after I've been confronting them with his statements.

So what is this agreement about?

First of all HTC had 2 threatening 4G patents in their portfolio which would have been valid for a lawsuit in the US. In a potential trial Apple would have significantly struggled to counter these patents, which would have ultimately led to an import ban of their 4G/LTE devices.

Second, Apple couldn't gain any significant wins against HTC outside of the US. In fact, it would have faced some serious trials in mainland China and we all know that those are the most unpredictable ones!

Third (and this is another very important argument) they both hate Samsung. It's like cats and dogs with Taiwanese and Koreans and you will still get to know consumers here, that would never ever buy a product from South Korea.
Apple loses market share because of Samsung and HTC lost even more.

Apple might have slapped HTC around a little bit since they started the first lawsuits against them back in May but you need to keep in mind that HTC is no thread for Apple in terms of marketshare. They don't compete against each other! 

This was a perfect time for Apple to settle this and gain an ally for their fight against Samsung. HTC doesn't need to bother about UI workarounds and does have some hefty software method and procedure ammunition to go after Samsung.

To sum it up... HTC because the Apple made bullet with Samsungs name on it!
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9 comments
 
Apple made a mistake in killing the One X in the US so that people who would have bought it went for the S3 instead, making it the most popular smartphone.
 
Good summation!! I also hear that HTC is concentrating more on being Microsoft's number 1 partner (outside Nokia) with Windows phone. Since Microsoft and Apple are patently chummy, Microsoft would've given HTC a helping hand with bringing it's case to Apple and settling. Just another rumour I heard around the traps... 
 
Well I thought that HTC and Samsung were together against apple... I guess not... Shouldn't they first attack apple and later settle the internal differences.. You know fight for Android? 
 
The large per unit royalties quoted made no sense for an even more fundamental reason. They didn't take into account the HTC side of things. Even if HTC were paying Apple, Apple would still be paying HTC some amount which would offset the costs.

Frankly many analysts come off sounding completely clueless. Seriously, they don't seem to understand much about technology, the legal system or business. How do they get their jobs?
 
HTC patents are much more valuable against Apple because Apple sell so much more than HTC. I think this transaction would have been fairly even.

I hope HTC can take advantage of this though. 
 
Apple is in a new era and needs allies more than it ever has before.  They seem to use their patent lawyers to make partners out of their enemies more often than Apple works with another organization with out litigation attorney involvement.  Not exactly the best way to go about it but it is the Apple way....
 
HTC Sensation was a good phone - I would like to see a similar Android device (changeable accu, SD slot, etc.) from HTC with 2gb RAM and sufficient flash. 
 
Don't count on HTC attacking Samsung over Android, that's a quick way to lose their Android licence. 1st they'll have to quit the Android biz. Given how badly they've cocked that up it's not impossible...
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