Cloud Computing: Analyst Takes Stab at HTC Royalty to Apple

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.

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