HTC to pay Apple $6 to $8 per Android phone in patent settlement

Posted on Nov 12 2012 - 12:12pm by Mike Wewerka

HTC and Apple have come to an agreement when it concerns a patent dispute that’s been going on for a while. Over the past weekend, the two companies stunned the tech world when they announced that they had not only settled, but also announced a new 10-year cross patent deal that will see Apple and HTC sharing patents when it relates to smartphones. While other details of the settlement were left out of the announcement, Analyst Shaw Wu of Sterne Agee, says that he’s heard from sources that suggest HTC will pay Apple between $6 and $8 per Android phone sold.

For HTC, that price is stacked on top of the $5 they already pay Microsoft for Android devices. How much of a dent this will leave in HTC’s profit margins remains to be seen, but with the company continuing to drop marketshare and missing Wall Street projections by staggering numbers it can’t really help. Hopefully they money they save on lawsuits and legal fees will help the company save some cash.

HTC is also on the verge of launching their Windows Phone 8X on Verizon this week, which is already available on AT&T. They also have another big announcement tomorrow (November 13th) with Verizon which is rumored to focus on the DROID DNA, the industry’s first smartphone with a full HD 1080p display. So hopefully with these new devices and legal hurdles jumped, HTC can get back to some profitability.

Source: Mashable