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iPhone: Article

Analyst Takes Stab at HTC Royalty to Apple

HTC's financial position has been deteriorating

Sterne Agee analyst Shaw Wu think Apple is going to get $6-$8 in royalties on each Android phone HTC sells because of their weekend licensing arrangement that puts an end to all litigation between them.

Of course, terms weren't disclosed and Wu's estimate could just be a shot in the dark. If the figures are on the money Apple would see an extra $180 million-$280 million a year, a negligible sum for Apple.

He thinks it's less than the number Apple originally proposed.

HTC's financial position has been deteriorating; it currently has only a 4% global market share, down from 10.3% year-over-year, below even Chinese handset maker ZTE.

The payments to Apple will likely pressure its profitability some more.

The Dow Jones says HTC initiated the settlement talks with Apple after setbacks in court.

The settlement has raised questions about Apple's determination to pursue Steve Jobs' "thermonuclear war" against Android. However, Samsung's market share is now double Apple's.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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