« But wait, there is one more thing — patents. HTC as a company will pay out nearly $1.1 billion in royalty payments to others, including $5 per phone it paid to Microsoft. That’s roughly 12 percent of their revenue or over $40 per handset, according to estimates from Ashok Kumar, analyst with Rodman & Renshaw, a brokerage! And that is before Apple gets its pound of flesh.
Patents create a market where even a big company like HTC can’t compete. It’s impossible for a startup to enter this market. Yo, HTC — you got problems. And Dr. Dre can’t fix them — Tech News and Analysis
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