HTC Is not Paying Apple, Company’s CEO Says

It is no secret that Apple and HTC agreed on a 10-year licensing deal at the beginning of November . The deal settled a long-lasting legal dispute that was underway between the two companies. As the details of the deal were (and are) kept under wraps, some experts and analysts suggested that HTC should have paid Apple a considerable sum for settling the conflict down. HTC is denying all rumors.

Shaw Wu from Sterne Agee suggested that the Taiwanese smartphone maker had agreed on paying Apple from $6 to $8 per handset. Peter Chou, HTC CEO, denied that suggestion and called it outrageous. Mr. Chou said that the estimates of Shaw Wu were baseless and wrong. He added that he would not uncover any details of the deal but stressed that HTC had managed to settle the legal struggle on easy terms. Cher Wang, chairwoman of HTC, added that it was Peter Chou who negotiated with Apple on the legal issue. She denied all suggestions that HTC was going to fire some directors from the board. Cher Wang stressed that she was satisfied with the work of Peter Chou and would fire him under no circumstances. To note, HTC has reportedly sued one of the Taiwanese magazines for gossiping about the alleged ousting of the top directors of the company. Cher Wang affirmed that she trusted Peter Chou and would continue working with him.

Meanwhile, Q3 data on HTC’s earnings leaves much to be desired. The Taiwanese company continued losing its market share to Samsung in Q3. The company reported to earn $2.4 billion in Q3 – a figure that can disappoint the most positive investors. The revenues saw a 48-percent drop in year-on-year period. In Q3, the revenues slid by 23% from $3 billion of Q2.

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2 Responses to "HTC Is not Paying Apple, Company’s CEO Says"

  1. marzetta7 says:

    I don’t understand why the price is so important to everyone. Let’s just be glad that they were able to settle.

  2. DrBoar says:

    Yes the settlement is between $5.99 and $7.99 so yes, way lower than the speculated $6.0 to $8.0. Stupid corporate doublespeak.


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