Apple (AAPL +0.2%) will get paid a royalty of $6-$8/phone from HTC, claims Sterne Agee's Shaw...

Apple (AAPL +0.2%) will get paid a royalty of $6-$8/phone from HTC, claims Sterne Agee's Shaw Wu, citing "conversations with industry sources." If that range is accurate, it suggests a big compromise from a company recently asking for $31.14/phone from Samsung just for its design IP and 3 software patents. There's a good chance Samsung and Motorola Mobility (largely sued over the same IP) would accept similar terms if offered. Apple and Google (GOOG +0.5%) are up slightly, while HTC rose 6.9% (the maximum allowed) in Taipei. (Apple/HTC deal: I, II, III)

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Comments (7)
  • ShibuyaInvestor
    , contributor
    Comments (9) | Send Message
    I am really sick of AAPL falling...


    We could go into a scenario where AAPL will constantly underperform, despite consistent increases in earnings, "just because" people think it "may" stop growing "one" day.


    Think AMZN's overvaluation, just the other way round.
    12 Nov 2012, 01:47 PM Reply Like
  • Exercisestellarhealth
    , contributor
    Comments (432) | Send Message
    It is growing right now, and will for the next eight quarters at least just with it's current refreshes to current products. I am sure Apple will innovate new products, that is a given all tech companies know this is essential. Apple has also said in their recent annual report they are committed to continual innovation and has raised R and D spending by approx. a billion that is a good sign, that should reassure investors.
    13 Nov 2012, 06:39 AM Reply Like
  • Artaqq
    , contributor
    Comments (111) | Send Message
    Good call, Shib... I don't get the whole down turn in people's opinion of Apple. It seems to be more related to Apple telling Google to take a hike than their actual performance.
    12 Nov 2012, 02:00 PM Reply Like
  • MAdeelA
    , contributor
    Comments (62) | Send Message
    Just imagine if Tim Cook came out and said that the iPad mini has gotten off to a "modest" start. While MSFT is only down 1.5% as a result, AAPL would probably be down 7% and GOOG would be up 5%.
    12 Nov 2012, 03:05 PM Reply Like
  • rocback
    , contributor
    Comments (1098) | Send Message
    One reason Apple may have given HTC the liscense is that many lower cost HTC phones compete directly with Samsung. So Apple gets a double benefit. Not only do they get a healthy royalty but they tie up Samsung, their enemey what stole ther design, with an advantage to Samsungs competitor on the lower costs phones Apple doesnt deal in.
    12 Nov 2012, 04:17 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3711) | Send Message
    SO I need some clarification, does this post mean that HTC and soon Samsung pay both MSFT and AAPL for each smart phone?
    12 Nov 2012, 08:10 PM Reply Like
  • adrian816
    , contributor
    Comments (177) | Send Message
    I'm not sure if this is correct, but does the android source code ( hosted by Google ) include features which are covered by Apple & Microsoft patents? I can see the point in phone makers paying for patents related to the hardware ( 3G / GSM / WCDMA radio electronics for example ) but what about the software?
    20 Jul 2013, 05:04 PM Reply Like
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