Apple patent infringement lawsuit applies pressure to HTC

Run Windows on Mac OS X with no reboot!“Apple Inc.’s patent infringement lawsuit against HTC Corp. could put additional pressure on the Taiwanese smart-phone maker, which has been struggling to compete against bigger rivals to sell smart phones to the mass market,” Charmian Kok reports for The Wall Street Journal.

“Analysts say if Apple succeeds in barring the sale of HTC phones in the U.S. market, that would be detrimental to the company because about half of its sales come from North America,” Kok reports. “‘If Apple wins the lawsuit, this may potentially affect HTC’s revenues and their competitiveness in the long run,’ said Chia-lin Lu, an analyst at Macquarie Capital Securities.”

Kok reports, “HTC Chief Financial Officer Hui-Meng Cheng said Wednesday he doesn’t believe the lawsuit poses a material impact on its business and he doesn’t expect the lawsuit will change its first-quarter guidance. ‘Our legal counsel is still studying the matter and we’re still trying to understand the details of the case,’ Mr. Cheng said.”

MacDailyNews Take: Time out. Logic problem. Somebody please explain the following sentence, because we can’t:

HTC’s legal counsel is still trying to understand the details of the case, but HTC says that Apple’s lawsuit doesn’t pose a material impact on their business.

Here’s a wild idea: Maybe HTC should first understand the details of the case before making pronouncements on its material impact on their business? (And, please don’t confuse Charmian Kok with Chairman Cock. The former writes for Dow Jones Newswires out of Taipei and the latter claims to be “Supreme Leader” of North Korea.)

Kok continues, “News of the lawsuit pressured HTC’s shares Wednesday, with the stock falling as much as 3.3% to 319 New Taiwanese dollars, or about US$9.96. Year-to-date, HTC’s shares are down 10%, underperforming the benchmark Taiwan index’s 7.2% decline.”

MacDailyNews Take: And there’s your material impact.

Kik continues, “Alen Lin, an analyst at BNP Paribas, he has a “hold” rating on HTC with a 12-month price target of NT$300 because of the company’s uncertain outlook.”

Full article here.

MacDailyNews Take: Cue the Kim Jong-il supporters. wink

19 Comments

  1. I’m getting real tired of the media painting Apple as the evil bad guy here. They have the right to defend their IP. How many stupid law suits have been filed against Apple? Don’t know, cuz the media rarely covers that. It’s BS.

  2. HTC had to make a statement regarding 1Q guidance. Their attorneys haven’t fully reviewed the case, including all the patents Apple is claiming are violated, etc. His comments just show that he had to say something and spin it to where it won’t hurt HTC too much in the near future, otherwise Wall Street would hammer their stock.

  3. Now there’s a turn of phrase I’ve not seen before:
    down 10%, underperforming the benchmark Taiwan index’s 7.2% decline.

    Using that logic, HTC has boldly attacked Apple via inducing a devastating lawsuit. HTC says, “Apple will reap the mother of all ineffective defenses and hasten to lose competitors!”

  4. @honjoe:

    Nothing weird at all. Apple has the most successful product. The others don’t. That’s the whole difference.

    Companies suing Apple want to participate on their success without being able to do the hard work, that is, designing and producing a good product.

    When Apple sues, however, it is against companies who don’t do the hard work either. Instead, those companies ‘copy’ Apple’s approach. Unfairly, in the eyes of Apple (and I’m leaning towards their viewpoint).

  5. Hey MDN, great stuff on the site today, so many posts I could make.

    “HTC’s legal counsel is still trying to understand the details of the case, but HTC says that Apple’s lawsuit doesn’t pose a material impact on their business.”

    This is a variant of the “decide what you will discover before you discover it.” or the variant used in schools “decide what others will discover before they discover it” aka the curriculum.

  6. “‘If Apple wins the lawsuit, this may potentially affect HTC’s revenues and their competitiveness in the long run,’ said Chia-lin Lu”

    Wow, this guy must have been potentially hanging out with Einstein or something, right?

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