HTC to pay $6 to $8 to Apple for every Android device it sells

All patent disputes involving Apple doesn’t have to end up like Samsung paying over 1 billion dollars. Over the weekend, HTC and Apple proved this point by signing a 10-year licensing agreement for current and future patents. The details of the agreement were not disclosed by both tech giants, leaving us to wonder how the agreement came to be in the first place. Apple has been dubbed by many as a patent troll, fiercely guarding its own patents while making sure that those who cross the line pays up.

But according to Sterne Agee analyst Shaw Wu, Apple is expected to get around $6 to $8 for every Android device HTC sells. On an annual basis and assuming that HTC sells around 30 to 35 million Android devices per year, Wu estimates that HTC could pay around $180-$280 million per annum to Apple. Wu’s estimate is reportedly based on his conversations with some sources in the industry. “We think $6-$8 seems reasonable if not a relatively small price for HTC and others to pay to be able to sell a modern smart phone with touchscreen,” writes Wu.

Gene Ryan Briones
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