HTC Says Its Settlement With Apple Will Pay Off In 2013

Ray Yam, president of HTC China, is optimistic that HTC will do much better in 2013 now that its legal disputes with Apple have been solved. Now that HTC doesn’t have to work around Apple’s software patents, they can now focus more on new product innovations.

Yam stated that HTC has adjusted its products, sales, and marketing strategies for 2013 since its settlement with Apple back in November,

“The settlement with Apple will start to pay off next year, and the fourth quarter of this year is still going at a set place.

HTC wasted too many resources on the Apple lawsuits, which were seen as ‘a sword hanging over our heads’.

Since the settlement, HTC has encouraged its employees during various meetings to ‘take broader steps’.

The biggest benefit to us is that we can put more energy into innovation, which is more important than anything else for a technology company.”

Yam also believes that many of HTC’s new projects are proceeding at faster speeds. He also believes that the legal disputes with Apple have actually helped HTC become better negotiators, especially with carriers.

The cross-licensing patent agreement that HTC and Apple agreed to have been extremely beneficial to HTC in terms of the market, as well as innovation. HTC’s stocks are no longer threatened and HTC will be able to rise in the US marketplace.

Robert Yen, Taipei analyst at Goldman Sachs, stated,

“We believe that by being able to access Apple’s patent portfolio, HTC will be able to release part of its engineering resources that have been tied up with work-around solutions. This could potentially allow HTC to offer smartphone products better than those of its Android peers in terms of features and user experience, which would help the company pick up marketshare.”

However HTC still faces several problems not entirely inclusive with its battle with Apple. HTC has lost of market share in the US and it’s facing tough competition in China’s smartphone market.

Barclays PLC, a British multinational banking and financial services company, believes that unless HTC and Apple build their business relationship further, or cooperate together on mobile devices, the HTC-Apple settlement will be relatively non-beneficial to HTC’s predicament.

Focus Taiwan

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