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


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

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