Apple: We Want $5-$15 for Every Android Device You Sell

March 7, 2012

Amidst the ongoing courtroom drama between Apple and a number of Android manufacturers, from Samsung to Motorola, Dow Jones Newswire reported that Cupertino is set to extend an olive branch to its patent rivals, which may just bring an end to the ongoing legal war of attrition.

An insider familiar with the case said that Apple is ready to make peace and cut some deals with Android OEMs, which will see Apple collecting a licensing fee of 1% to 2.4% from the net sales, for each Android device manufactured by Samsung and Motorola. Such a licensing agreement would put the royalties payment at approximately $5 -$15 per unit.

Since we don’t believe in unicorns, it is highly unlikely to see any white flags being raised by major Android handset makers anytime soon, especially Samsung and Motorola. With a huge bargaining position as one of Apple’s main parts (including memory chips and micro-processors) suppliers, Samsung isn’t likely to admit defeat, and will probably choose to prolong the legal battle instead. It’d be even more absurd to think that Motorola, which has been acquired by Google for $12.5 billion specifically to secure various mobile-related patents, would even batter an eyelid on the supposed proposal.

The patent disputes between Apple and various Android handset makers have spread across several countries and dozens of cases. No winner has emerged from the patent war so far, as each company has had its share of victories and setbacks. Just as the news broke about Apple offering a licensing fee, Samsung has filed yet another patent lawsuit against Apple, in its homeland Korea. For now, it appears that the patent battles are about to get messier.

Meanwhile, somewhere in Redmond, WA, a bunch of Microsoft accountants are busy counting the licensing fees that the software giant receives for 50% of all Android devices sold. At 850,000+ daily Android activations and a conservative $5/licence, that would be $2.125 million every single day. Not bad, Steve, not bad!

Comments

  • Graham Laight

    How about I make a fork of Android called “Linux Touch” (or whatever). I’ll sell you a phone with no OS except a simple loader which offers you a choice of operating systems, one of which will be Linux Touch. There will be no company, or other assets, behind Linux Touch, so nobody to sue.

    IMO, everybody should avoid companies that pay licence fees to patent trolls like Apple and Microsoft. The laws of economics dictate that if you pay a toll to a troll, the result will be more trolls demanding tolls.

  • wonshikee

    Screw that, fight apple to the end. They’ve been a litigation asshat since the beginning, way before they ever got popular with the iPods.

  • einpeb

    they better not give in, apple is just chapped because they know they’re devices are gonna start losing sales soon.

  • Jane Doe

    Google is an unwitting Enabler of Apple’s rotteness. Google should round-up all their employee’s Macs that they paid for and bulldoze them into a giant mass grave in front of their headquarters!

  • Podymessi2000

    fuck android

    • ThePeddle

      Sad little Apple fanboy…..small screen outdated device lover……maybe you your little hands and mind can’t handle a larger more powerful device which android offers….its OK…you don’t have to be angry