Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Reviews

    Will Apple’s Patent Win Doom Android?

    By
    P. J. Connolly
    -
    July 18, 2011
    Share
    Facebook
    Twitter
    Linkedin
      HTC_Logo_QB_200x200

      Although the U.S. International Trade Commission’s preliminary finding that HTC has violated two of Apple’s patents is serious stuff , it may be that all Android vendors will be affected by the ITC’s final ruling. That’s because the infringed patents cover functions that are said to be at the heart of the mobile operating system; press reports this morning speculated that hundreds of millions of dollars could be at stake, when similar lawsuits filed by Apple against Motorola and Samsung are factored in.

      [WP_IMAGE]

      It’s true that nobody likes to write checks for eight or nine figures. But this is the sort of cost that will inevitably be passed along to the purchaser, even if it takes a little while to be figured into the manufacturer’s cost of doing business.Let’s say that a final decision by the ITC leads to a premium of $10 per device; that’s twice what HTC has agreed to pay Microsoft under their recent licensing agreement. Now double it again, and you have what is commonly referred to as the “yuppie lunch coupon” – or $20. I don’t know about you, but as cheap a skate as I am, I rarely let $20 get in the way of getting a device I want, and since I’m likely to pay $50-60 in sales tax on that device, another few bucks isn’t going to slow me down at all.

      For a specific example of this, let’s consider the Samsung Infuse 4G – because AT&T doesn’t carry an HTC-built Android device that’s anywhere close to the iPhone 4. AT&T sells these for $549.99 under its “No Commitment” model; even if I purchase an Infuse under a 2-year contract, I have to pay California sales tax on the $549.99 base price, rather than the $199.99 discounted price. The difference in tax is around $25-30, depending on where in California I live. In other words, I pay far more in taxes on the device to Sacramento than I would ever pay to Cupertino.

      Now, if the notional premium I suggested is applied to Samsung’s Android devices, guess what? Either the company makes less per device, raises the price by $10, or – the most likely solution – wrings most of that $10 back from its suppliers. Maybe that means Samsung doesn’t get to put every last geegaw in the device; although it would be nice to have a hygrometer every now and then, I’d be just fine without one on board.

      No, what this preliminary finding really means is that Apple’s going to get paid even if you don’t buy its devices. That, my friends, is the best of all business models.

      P. J. Connolly
      P. J. Connolly began writing for IT publications in 1997 and has a lengthy track record in both news and reviews. Since then, he's built two test labs from scratch and earned a reputation as the nicest skeptic you'll ever meet. Before taking up journalism, P. J. was an IT manager and consultant in San Francisco with a knack for networking the Apple Macintosh, and his love for technology is exceeded only by his contempt for the flavor of the month. Speaking of which, you can follow P. J. on Twitter at pjc415, or drop him an email at pjc@eweek.com.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×