HTC Wants To Talk With Apple

  • Posted: 26 July 2011 04:09 PM

    It’s reported HTC now wants to talk with Apple about the patent disputes.

    What do you think?

         
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    Posted: 26 July 2011 04:23 PM #1

    DawnTreader - 26 July 2011 07:09 PM

    It’s reported HTC now wants to talk with Apple about the patent disputes.

    What do you think?

    It is a sign of capitulation and very good news for Apple. HTC cannot afford to have this sword of Damacles hanging over its head on its primary product line.

    One of the basic rules of negotiation is to never negotiate in public. By giving the quotes they have given in the article, which can be read by the whole world…competitors, customers, Google…and which are inartful and demonstrate a very uncertain posture, HTC is admitting a great deal. They are virtually conceding money will be moving from HTC (or a surrogate) to Apple.

    I would love to be handling Apple’s end of these negotiations. But the tea leaves are not hard to read here. Apple is coming on strong, has the law and the wind (and the portfolio) at its back. Apple has not yet been “reasonable” in negotiating (and has time, money and the high ground)so HTC is virtually capitulating to get something done. Time is the third party in any negotiation and time is not on HTC’s side. Not at all.

    Now, Apple, no need to kill the goose here. Just get a fair payment on your patent portfolio and Mr. Market will take care of the rest.  grin

    [ Edited: 26 July 2011 04:26 PM by Red Shirted Ensign ]

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  • Posted: 26 July 2011 04:42 PM #2

    Red shirted ensign - 26 July 2011 07:23 PM

    Now, Apple, no need to kill the goose here. Just get a fair payment on your patent portfolio and Mr. Market will take care of the rest.  grin

    This may be true, but I don’t think Apple wants to make money off of HTC or to be reasonable either. I think Apple wants a one-time cash settlement as “punishment” for HTC’s transgressions and to warn others off their patents and to force HTC to make their future phones without using the infringing patents. That’s about as hard line as it gets.

         
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    Posted: 26 July 2011 05:01 PM #3

    HTC is definitely showing they are on the ropes.

    With SJ at the helm Apple has always been very hard negotiators, when protecting what they feel is theirs regardless how miniscule the technology or issue is.
    It will be interesting to see how this plays out with TC taking a more active role lately.

    Very good news for longs. Since HTC is one of the leaders in building the Android market, without HTC I think a lot more coverts to iPhone.

         
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    Posted: 26 July 2011 09:00 PM #4

    This is really interesting.  Did anyone think HTC would be this willing to talk at this point? 

    Also, with their Chief Innovation Officer leaving the other day, HTC really needs to work on its timing/media savvy.

    While Apple may seem to have the upper hand, it will probably have S3 in mind during negotiations.  Might as well deal with it, even though it’s only non-NVIDIA GPU Macs (which, as of right now, every shipping Mac is)  It’s weird stuff - I mean, why is the patent infringement “GPU dependent”?  Does that mean that ATI/AMD/Intel is also infringing on some theoretical level?

    [ Edited: 26 July 2011 09:07 PM by Mav ]

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  • Posted: 26 July 2011 09:43 PM #5

    adamthompson3232 - 27 July 2011 12:30 AM

    I would like to talk with apple too to tell SJ I love him for what he’s done to my stock account.

    He’s pretty busy right now trying to get that damned iPhone 5 launch date out of that hermetically sealed jar, but I’ll put in a good word for you. HTC will just have to wait its turn like everybody else.

         
  • Posted: 27 July 2011 02:27 AM #6

    richardlo - 26 July 2011 08:01 PM

    HTC is definitely showing they are on the ropes.

    With SJ at the helm Apple has always been very hard negotiators, when protecting what they feel is theirs regardless how miniscule the technology or issue is.
    It will be interesting to see how this plays out with TC taking a more active role lately.

    Very good news for longs. Since HTC is one of the leaders in building the Android market, without HTC I think a lot more coverts to iPhone.

    We’ll see migration from Android to the iPhone this fall as the first wave of contracts from 2009 expire and the iPhone is now available on the Verizon network.

         
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    Posted: 27 July 2011 08:09 AM #7

    Sekai - 27 July 2011 06:33 AM

    I’m looking at getting some stock in 2498.TW (HTC), and was hoping there was a forum with people who have a decent working knowledge of how this will most likely go down. How long do cases like this usually for the ITC to rule, likelihood of Google getting pulled into the fray, likelihood of an injunction, questions like those. Most of the discussions I’ve seen are just subjective emotional outbursts.]

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  • Posted: 27 July 2011 01:00 PM #8

    DawnTreader - 27 July 2011 05:27 AM

    We’ll see migration from Android to the iPhone this fall as the first wave of contracts from 2009 expire and the iPhone is now available on the Verizon network.

    Maybe. Horace has a new article indicating that the reason the addition of Verizon to the iPhone stable was no big deal was because Apple’s international sales of the iPhone are swamping their U.S. sales. (See HERE.) Android owners may very well decide to flip in large numbers from Android to the iPhone when their contracts expire, but probably the much bigger growth indicator will come from new international buyers.

    Distribution through the carriers clearly distorted iPhone and Android sales. Now Apple has increased the number of carriers selling the phone, reduced the incentive of carriers to push Android and unleashed unlocked phones into the wild. Cook called the start of sales of the iPad 2 “the mother of all backlogs”. I strongly suspect that the iPad 2 backlog will pale in comparison to the backlog that’s about to occur when the iPhone 5 hits the market. If Apple can keep up with the demand, the iPhone 5 is going to sweep away all previous sales records. And don’t be surprised if it stalls or reverses Android’s “inevitable” march to smart phone domination and moves the needle on iPhone total market share.

         
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    Posted: 27 July 2011 01:20 PM #9

    Red shirted ensign - 26 July 2011 07:23 PM
    DawnTreader - 26 July 2011 07:09 PM

    It’s reported HTC now wants to talk with Apple about the patent disputes.

    What do you think?

    It is a sign of capitulation and very good news for Apple. HTC cannot afford to have this sword of Damacles hanging over its head on its primary product line.

    One of the basic rules of negotiation is to never negotiate in public. By giving the quotes they have given in the article, which can be read by the whole world…competitors, customers, Google…and which are inartful and demonstrate a very uncertain posture, HTC is admitting a great deal. They are virtually conceding money will be moving from HTC (or a surrogate) to Apple.

    I would love to be handling Apple’s end of these negotiations. But the tea leaves are not hard to read here. Apple is coming on strong, has the law and the wind (and the portfolio) at its back. Apple has not yet been “reasonable” in negotiating (and has time, money and the high ground)so HTC is virtually capitulating to get something done. Time is the third party in any negotiation and time is not on HTC’s side. Not at all.

    Now, Apple, no need to kill the goose here. Just get a fair payment on your patent portfolio and Mr. Market will take care of the rest.  grin

    New line item on the balance sheet: copycat fees. Or perhaps vassalage tribute.

    Shoot, no jester emoticon.  :innocent:

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  • Posted: 27 July 2011 06:13 PM #10

    FalKirk - 27 July 2011 04:00 PM
    DawnTreader - 27 July 2011 05:27 AM

    We’ll see migration from Android to the iPhone this fall as the first wave of contracts from 2009 expire and the iPhone is now available on the Verizon network.

    Maybe. Horace has a new article indicating that the reason the addition of Verizon to the iPhone stable was no big deal was because Apple’s international sales of the iPhone are swamping their U.S. sales. (See HERE.) Android owners may very well decide to flip in large numbers from Android to the iPhone when their contracts expire, but probably the much bigger growth indicator will come from new international buyers.

    Distribution through the carriers clearly distorted iPhone and Android sales. Now Apple has increased the number of carriers selling the phone, reduced the incentive of carriers to push Android and unleashed unlocked phones into the wild. Cook called the start of sales of the iPad 2 “the mother of all backlogs”. I strongly suspect that the iPad 2 backlog will pale in comparison to the backlog that’s about to occur when the iPhone 5 hits the market. If Apple can keep up with the demand, the iPhone 5 is going to sweep away all previous sales records. And don’t be surprised if it stalls or reverses Android’s “inevitable” march to smart phone domination and moves the needle on iPhone total market share.

    Verizon spend handsomely on the Droid primarily as an iPhone substitute. There’s no longer a reason for Verizon to invest as heavily in Android promotion. The low cost of the devices provides one benefit, but it does not increase customer satisfaction and retention.

    The Droid launch began in November 2009 and the first wave of Droid contracts are coming up for renewal. That’s fertile ground for Apple and the iPhone 5.

    Android handsets have a definite place in the market but it’s not in competition with the iPhone. The handsets are effective in moving customers up from feature phones and generating data service revenue for the carriers.

    The iPhone 5 will recapture share in the high-end spectrum of the handset market. At this time no other market matters.

         
  • Posted: 27 July 2011 06:46 PM #11

    DawnTreader - 27 July 2011 09:13 PM

    Verizon spend handsomely on the Droid primarily as an iPhone substitute. There’s no longer a reason for Verizon to invest as heavily in Android promotion. The low cost of the devices provides one benefit, but it does not increase customer satisfaction and retention.

    The Droid launch began in November 2009 and the first wave of Droid contracts are coming up for renewal. That’s fertile ground for Apple and the iPhone 5.

    Android handsets have a definite place in the market but it’s not in competition with the iPhone. The handsets are effective in moving customers up from feature phones and generating data service revenue for the carriers.

    The iPhone 5 will recapture share in the high-end spectrum of the handset market. At this time no other market matters.

    Agree with every word.

         
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    Posted: 29 July 2011 04:32 PM #12

    Curiouser and curiouser.

    HTC wins the “first round” because of the S3 patents it’s buying up, but they only cover…Macs with ATI/Intel GPUs.

    The same day, Apple wins a “first round” of its own when the USPTO, if I’m reading this right, made some initial determination that the exact same S3 patents aren’t valid!  Source:  TMO’s Bryan Chaffin

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  • Posted: 29 July 2011 05:29 PM #13

    Apple is not interested in licensing patented iPhone technologies. I don’t hold out much hope for HTC. I think Apple wants/needs a full legal victory over their weakest opponent to frighten the others from copying Apple designs.

         
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    Posted: 30 July 2011 10:12 AM #14

    Let’s not forget that Apple is not required to negotiate or settle with HTC, but has the nuclear option of demanding HTC not sell handsets in the US, and this is what is scaring HTC.  The fact that these disputes are traditionally settled by negotiation is no guarantee of it and HTC knows it.

         
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    Posted: 30 July 2011 10:50 AM #15

    zulu - 30 July 2011 01:12 PM

    Let’s not forget that Apple is not required to negotiate or settle with HTC, but has the nuclear option of demanding HTC not sell handsets in the US, and this is what is scaring HTC.  The fact that these disputes are traditionally settled by negotiation is no guarantee of it and HTC knows it.

    And the uncertainty being created by this standoff is something HTC cannot just brush away. It’s investors, customers,suppliers,  employees…..all are no doubt concerned. Uncertainty creates a premium cost of operations at every level from legal costs to component terms.

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