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

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

Summary: Comes down to one thing - Money.

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TOPICS: Apple
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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.

Topic: Apple

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

    Burn in Hell, Apple, right alongside Microsoft, the company you've become.
    thebaldguy
    • RE: And this is why Apple doesn't want to settle Android patent lawsuits

      @thebaldguy

      And Google isn't selling your personal data for fun and profit?
      jgpmolloy
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@... The inevitable "Google is just as bad" argument.

        Google may prove to be as bad as Apple, but so far, they are providing a boatload of free goodies in exchange for advertisements. Apple (and Microsoft) OTOH are doing their best to keep computing expensive and proprietary.
        thebaldguy
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @thebaldguy The inevitable "Apple should burn in hell" argument.

        "but so far, they are providing a boatload of free goodies in exchange for advertisements."

        You may not value your information as much as I do then. Free goodies are usually a sign of something not being right.
        jgpmolloy
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@... No, actually they're not! That was proven to be propaganda but you guys keep posting it.
        slickjim
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@...
        To the guy who says that "free goodies are a sign of something not being right" - ads have driven the whole development of television (free), and the internet (free), for a couple of examples. (Maybe that's a bad thing, depending on your perspective.) Advertising plays a significant part in making the world go round. As of now, I trust Google, and I am more than happy to get targeted ads in exchange for free stuff. They are more open about their policies than most anyone. You have no problem with random ads on other sites? You think "the internet" in general isn't tracking you and knows more than you think? Sure google could be doing bad things behind our backs, but they have the most to lose. Eric Schmidt even said (to paraphrase) - if we were up to anything sneaky, people would find out and that would be the end of google.
        deathjazz
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @thebaldguy

        [b]Google may prove to be as bad as Apple, but so far, they are providing a boatload of free goodies in exchange for advertisements. Apple (and Microsoft) OTOH are doing their best to keep computing expensive and proprietary.[/b]

        Cue the inevitable open vs proprietary argument. It's almost as predictable as the "Apple and Microsoft sucks" comments from you open source people.
        athynz
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@... No, Google isn't selling my personal data for fun or profit. Until Google is convicted of breaking into my home and stealing information, Google doesn't have any information that isn't public or you've given to them.
        jgm@...
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @Pete Athens "Cue the inevitable open vs proprietary argument. It's almost as predictable as the 'Apple and Microsoft sucks' comments from you open source people."

        You're against things being open? That's like being against things being "good" or people being "nice". Are you against USB and PCIe because they're open standards? Are you in favor of vendor lock-in? A consumer's never hurt by things being more open.
        jgm@...
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @jgm@...

        [b]You're against things being open?[/b]

        Absolutely! open sucks!/sarcasm. So I have to be against open to have scorn for those who obnoxiously say open source is the only way to go? [b]
        That's like being against things being "good" or people being "nice". [/b]

        Hardly the same thing - but one cannot be "nice" all the time but that's a discussion for another time and another type of article.[b]

        Are you against USB and PCIe because they're open standards? Are you in favor of vendor lock-in? A consumer's never hurt by things being more open.[/b]

        I am also against puppy dogs, kittens, sunshine, rainbows, and feel-good hippy liberal crap.
        athynz
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@...

        Apple, Microsoft, and Google: The UNholy trinity.
        opcom
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        jgm@...

        "A consumer's never hurt by things being more open."

        So crapware that the carriers and OEMs load, which takes up space on your device and can't easily be removed by the average user is to the consumer's benefit?

        So not being able to load the latest and greatest version of an open source OS on a phone you got just 6 months ago is to the consumer's benefit?


        So the market being floaded with a bunch of crappy devices (not all, mind you) from a bunch of "look - me too" OEMs isto the consumer's benefit?

        Just because it's open doesn't make it a consumer's utopia. For every decent open source package, there are probably a thousand that I wouldn't let within 10 feet of my hardware. It's all about the community and how it's implemented. Android isn't bad, but that doesn't mean it's not without shortcomings.
        TroyMcClure
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@... And where exactly can I buy people's personal data from Google?

        Google don't pass on people's data. They keep it inside their data centers, and use it to figure out what ads to show to users. What they sell is advertisement placements, and they get advertisers to pay them because the ad targeting makes it's profitable.

        If you don't like taht, don't use Google's services. But don't lie about them *selling personl data*, because if you're going to claim that I demand proof.
        Natanael_L
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @john@... Actually no. Google is not. They're selling rights to advertise to groups based on certain aspects. Men ages 18 to 32 that constantly search for WOW patches and interface tweaks. That would be an example of what they sell. I think you're confusing them with facebook.
        mdeans@...
      • They sell information indirectly

        @Natanael_L<br>Their specific knowledge of you is sold to help their clients sell directly to you better.<br><br>No, they don't sell your details directly, but the ads displayed reflect what they know about you as directly as possible. The result is that the ads are trying to get into your psyche because they know what you do online!<br><br>Also, most apps that come with ads require far more permissions than those without. Many apps state that the permissions are only because of the ads.<br><br>And you pay for ads with the screen real estate of your phone that could be used for useful information instead, and not have to be touch-avoided so a web page won't open.<br><br>What did they say about a free lunch.<br><br>I now buy apps as a matter of course, as they mostly are very cheap, and I don't then have the apps keeping unnecessarly open lines to the internet and personnel data on the phone that they don't need of themselves.

        I notice some apps are specifically avoided if the permissions required seem excessive. The ad support mechanism may eventually lead to too much of a backlash from consumers.
        Patanjali
    • RE: And this is why Apple doesn't want to settle Android patent lawsuits

      @thebaldguy wrote:
      "Burn in Hell, Apple, right alongside Microsoft, the company you've become.

      Take your meds! PLEASE!!!

      Microsoft is perfectly happy with outcome no. 1 as WP7 has little to no market share. They actually make more money from Android-based devices than their own.

      Apple is sticking with outcome no. 2 as they have a significant market share and make more from selling an iOS-based device than they would from a royalty on an Android-based device.

      Apples and ... err, oranges.
      Rabid Howler Monkey
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @Rabid Howler Monkey
        I'm on meds. More people should be as well, IMHO.

        Apple has patented the idea of a graphical phone interface, and is now trying to force Google out of the business via asinine lawsuits over an asinine patent. Pardon me, but that's worthy of a wish to burn in hell. My apologies if you disagree.

        Have a nice day. :-)
        thebaldguy
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @thebaldguy Software patents exist in the U.S. (but, remember, Apple's war against Android is global) due to U.S. Supreme Court decisions. In the U.S. the USPTO is responsible for granting patents and is, theoretically, self-funding.

        In recent years, the U.S. Congress has been raiding the USPTOs "cookie jar". Making it more difficult for the USPTO to hang onto experienced staff and hire new staff for increased workloads. And people wonder about patent applications getting through the system that should never see the light of day.

        The America Invents Act was recently passed by the U.S. Congress and signed into law by the President. Although draft legislation included language barring Congress from raiding the USPTO "cookie jar", this language did not survive in the final legislation.

        What's funny is that, in the early- and mid-90s, many large corporations were against software patents. Today, software patents are just part of doing business.

        My point is that software patents are a problem (like MANY others) pretty much created by the U.S. government. Anyone seeking serious change would do well to send Presidents and Congressmen (and women) to Washington, D.C., that represent individual citizens like you and me rather than corporate citizens.

        P.S. I am not a fan of any company or OS, although I use and like Linux, Windows, BSD and Solaris.
        Rabid Howler Monkey
      • RE: And this is why Apple doesn't want to settle Android patent lawsuits

        @Rabid Howler Monkey <br><br>Better to be on meds than drink the Koolaide that Apple is trying to get others to drink here. I personally think that the case is a big farce. I can only hope that the courts see the same.
        Daschmi
    • RE: And this is why Apple doesn't want to settle Android patent lawsuits

      @thebaldguy

      Apple is apparently quite different in this game than Microsoft.

      Microsoft will happily settle for whatever per-unit royalties they get, because:

      1) this has been their strategy all time around. They probably still think, that if IBM could do it this way, they could too;
      2) Microsoft does not really have any smartphone market share and they are not very confident they will ever have significant market share, with out without Android.
      3) Therefore, for Microsoft it does not make sense to kill Android - instead they would prefer to keep Android alive, in order for Android to "beat" Apple.
      4) So far, Microsoft is only licensing (not even selling) software for smartphones. They do not manufacture any smartphone hardware.
      danbi