And this is why Apple doesn't want to settle Android patent lawsuits

Summary:Comes down to one thing - Money.

Ever wonder why Apple doesn't seem keen on settling the Android patent lawsuits it's involved in? It's because there's more money in winning.

On Monday, Deutsche Bank's Chris Whitmore sent a note out to clients outlining the four possible outcomes for Apple in its various battles with Android device makers worldwide.

Here's what he saw as the four outcomes:

  1. A settlement which resulted in Apple received a license fee per device sold
  2. Apple cripples Android and captures 25% of its future market share
  3. No winner
  4. Apple loses

Whitmore doesn't seem to consider outcome #3 and #4 all that likely and instead concentrates on outcomes #1 and #2.

Whitmore believes that a settlement would give Apple some $10 in revenue for each Android device sold, equating to some $35 to Apple's share price. However, if Apple was able to capture 25% of Android future growth through halting distribution and forcing feature removal, that could be worth some $300 per extra handset sold, or a whopping $261 on top of Apple's already buoyant share price.

"As a result," Whitmore says, "we suspect Apple is unlikely to settle cheaply."

I've said all along that I don't think that Apple will settle. The company doesn't need the $10 or so per handset. Apple is out for as much market share and dominance and it can grab.

Topics: Apple

About

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.Adrian has authored/co-authored technic... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.