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Apple Expected to Make up to $280M in Revenue from HTC Licensing Deal

by Todd Haselton | November 12, 2012November 12, 2012 11:30 am PST

Apple vs HTC

Apple and HTC settled a patent dispute recently after HTC agreed to pay licensing fees to the iPhone maker. Sterne Agee analyst Shaw Wu said on Monday that he estimates HTC will pay Apple between $6 and $8 per handset sold, which will result in $180 – $280 million in additional revenue for Apple in 2013. That figure is based on estimated HTC Android smartphone sales between 30 million and 35 million units.

“But to put this in context, this compares to press reports indicating HTC pays MSFT $5 per phone running Android,” Wu said. “One could argue that MSFT has much less patents and intellectual property than AAPL in this space and so 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.” Despite the seemingly large figure, Wu says the revenue is “immaterial” for Apple because it has a revenue base of $193 billion and net income of $48 billion.

Wu said he believes Apple will reach similar agreements with Samsung and Motorola now and that HTC’s licensing deal could be used as a “blueprint” for those settlements.

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...