Apple Inc. (AAPL) Will Not Negotiate An HTC-like Deal With Samsung

Samsung Electronics Co., Ltd. (LON:BC94) clearly stated that it won’t negotiate with Apple, unlike HTC Corp (TPE:2498). On Saturday, HTC settled its legal dispute with Apple Inc. (NASDAQ:AAPL), and there have been rumors that Samsung Electronics Co., Ltd. (LON:BC94) may follow the same suit. But ending all the rumors, the head of Samsung’s mobile division, J.K. Shin told Korean new agency Yonhap that it would continue the legal battle, instead of opting for an out-of-court settlement.

Apple Inc. (AAPL)  Will Not Negotiate An HTC-like Deal With Samsung

Though Apple Inc. (NASDAQ:AAPL) has scored a significant victory in the United States, many other clashes are going on in different countries, and both sides have seen varying levels of success. “It may be true that HTC Corp (TPE:2498) may have agreed to pay 300 billion won (US$276 million) to Apple, but we don’t intend to (negotiate) at all,” said Mr. Shin.

Apple announced on Saturday that it has signed a ten-year settlement with Taiwanese smartphone maker HTC. Under the deal, Apple will dismiss all the current and future lawsuits against HTC Corp. In fact, HTC was the first smartphone maker that Apple sued over patent infringement issues. Back then, HTC Corp (TPE:2498) was the leading Android-based smartphone maker.

Though the financial terms of the deal between HTC Corp (TPE:2498) and Apple Inc. (NASDAQ:AAPL) were not disclosed, a Sterne Agee analyst Shaw Wu speculates that HTC will be paying Apple $6 to $8 per smartphone. That means Apple will get approximately $180-$280 million based on HTC’s annual sales of 30-35 million Android smartphones.

The ongoing battle between  Samsung Electronics Co., Ltd. (LON:BC94) and Apple Inc. (NASDAQ:AAPL) is well documented. It is getting even more tedious, and the latest statement by Samsung won’t help resolve the issue quickly.

According to Strategy Analytics, a research firm, Samsung Electronics Co., Ltd. (LON:BC94) is the world’s largest maker of smartphones with 35.2 percent market share, followed by Apple with 16.6 percent market share during the third quarter this year. Overall, a quarter of the world’s mobile devices sold in the third quarter were from Samsung.

Thanks to the flagship Galaxy S3 smartphones, Samsung Electronics Co., Ltd. (LON:BC94) posted record $5.9 billion profit in the third quarter of 2012, up 91 percent from the same period a year ago. Samsung undoubtedly has a strong position in the global market, and perhaps this is the reason the company has decided not to give up.

And yes, we are now expecting a sarcastic response from Apple.

About the Author

Vikas Shukla
Although he has a background in finance and holds an MBA, Vikas Shukla is a technology reporter. He has a strong interest in gadgets, gizmos, and science. He writes regularly on these topics. - He can be contacted by email at