Taiwan’s HTC shares tumble after U.S. ITC’s Apple patent ruling

“Shares in Taiwanese smartphone maker HTC tumbled as much as 6.5 percent on Monday after losing a preliminary ruling in a patent case with Apple Inc, with its announcement of a share buyback failing to stem the fall,” Jonathan Standing reports for Reuters. “On Friday Apple won a preliminary ruling from a U.S. trade panel that HTC infringed on two of the California company’s patents , the first step in an acrimonious dispute between the two in the cut-throat smartphone market.”

“HTC, with an eye on the damage to its shares from the ruling, said over the weekend it would buy back up to 20 million of its own shares before Sept 17, or about 2.4 percent of its outstanding shares,” Standing reports. “The buyback price will be between T$900 ($31) and T$1,100 per share. The first 10 million will be bought back from July 18 and the second from Aug. 18”

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“The company will give half the bought-back shares to staff and retire the rest,” Standing reports. “‘HTC was intending to tell investors T$900 would be the shares’ bottom, but obviously investors did not buy that,’ said Simon Liu, deputy investment officer of Polaris Financial Group’s fund arm. ‘Instead, they are betting the ITC ruling would hurt its future earnings and market share. Even worse, more similar legal battles would follow.'”

Read more in the full article here.

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15 Comments

    1. Or at least a desperate company. HTC dumped Windows Mobile because Android was free. If Android doesn’t remain free, it looks like they might jump back to WP7. Either way, Android could become less attractive to smartphone companies if they have to pay any amount for it. That will signal the end of Android’s rapid growth. Any slowdown in Android growth will seem like a negative to Wall Street which believes that only rapid expansion is important. A bunch of jag-offs looking for quick returns.

      1. Of course growth was rapid … When they steal this from here and that from there and give it away in hopes of getting ad revenue you are a thief and everyone at Google should be feeling like they are working for a “thief” …..

        Gotta wonder how the phone makers are feeling right now?

  1. What does that come to? Half a billion USD? Three quarters?
    For all the good it will do them, they might as well put that money in a pile and set fire to it.

  2. I believe Apple is playing a long game on the whole Android issue. They waited until Android had traction, then started the legal action, while WM8 is still in it’s infancy. So hold back Android, but not stop in it’s tracks, allow iOS to gain more market share, all the time carefully watching WM8…

  3. You don’t need to prove they violated Apple’s patents to know they copied them because their phones have the same antenna problem (death grip, left hand thing) as the iPhone 4.

    1. Never had any problem with my iPhone4 beyond the “PHYSICS is PHYSICS” that every phone shows…..as demo’ed by SJ.

      By the way…if you don’t want one, don’t buy it. If you already got one , bring it back……….but you know you won’t.

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