Apple’s patent royalty fee wants to strip Samsung from smartphone profits
We’ve seen the ongoing drama by two of the biggest smartphone partners in the industry, since hey, Samsung builds a ton of parts for Apple’s mobile products. These two companies continue striking at each other with patent litigation, being Apple the biggest bully that claims that Samsung copied the iPhone, and Samsung claiming it hasn’t. Some new developments in all this claims that Apple’s plan is not really to make money from Samsung, but actually something else.
As it turns out Apple is reportedly asking for a $40 fee for every smartphone that Samsung makes. Analysts behind this report claim that $40 is actually enough for any smartphone that costs less than $400 to not make any profit, and we know Samsung is full of these. As a matter of fact, Samsung’s biggest market lies in the mid-to-low tier of customers, and this would seriously cripple Samsung’s ability to continue a feasible business model.
Obviously these are the royalty fees that Apple wants if Samsung wants to settle directly. Samsung can continue to deny being part of this and allow a judge to decide, even though that doesn’t necessarily mean that Samsung can win a sweeter deal if Apple can continue proving that Samsung infringed in patents in the last couple of years.