Last week, it was confirmed by Apple that itself and HTC had reached a settlement in regards to the global lawsuits between the two companies. This settlement included a 10-year licensing deal for use of each others’ patented technologies. Although early rumors suggested that the Taiwan-based tech company could be paying between $6-$8 per HTC device sold. Over the ten years, that would amass a quite staggering $3B.
If that figure sounded unbelievable, there’s good reason for it. It is untrue. HTC’s CEO, Peter Chou responded to questions from the media at a press event in Tokyo, and stated that the figure was “outrageous”. The actual figure itself was supposedly plucked out of thin air by analyst Shaw Wu, of Sterne Agee. Needless to say, his analysis was way off course.