High but not that high —

What’s HTC paying Apple for patents? Not an “outrageous” $8 per phone

It's a "very, very happy settlement," says HTC CEO Peter Chou.

When Apple settled all of its worldwide patent battles against HTC last week, it was clear from the get-go that the public was never going to find out the terms of the agreement. Of course, a sealed agreement doesn't stop speculators and pundits from doing their thing.

"HTC is expected to give Apple a net licensing fee of as much as $8 per phone, and may also serve as a blueprint for future deals with Samsung and Motorola," wrote Neil Hughes at AppleInsider. He cited analysts who spoke with "industry sources" who said the Apple-HTC deal will result in a net licensing fee of between $6 and $8. That's compared to press reports that HTC is paying Microsoft $5 per phone.

Yesterday, HTC CEO Peter Chou tried to lay that to rest. "I think that these estimates are baseless and very, very wrong," said Chou, according to a Reuters report out of Tokyo. "It is an outrageous number, but I'm not going to comment anything on a specific number. I believe we have a very, very happy settlement and a good ending."

Not long ago, HTC was a high-flying smartphone company, but today it has dramatically lost market share, especially to Samsung. The suggestion of a high payout to Apple comes at a time when HTC is also dealing with rumors of boardroom tension between Chou and the company's chairwoman. The company denies those allegations, which were reported in Next Magazine, a Taiwanese publication.

 

Channel Ars Technica