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

March 7, 2012
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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!

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