Apple Could Obtain $10 Per Android Device Sold
By on December 29th, 2011

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Oh boy, while Apple is trying to save their intellectual property from not being stolen, analysts are telling what Apple should do. Apparently,  Kevin Rivette, managing partner at intellectual property firm 3LP Advisors LLC, said in an  interview with  Bloomberg  that he believes Apple could probably collect up to $10 in royalties for every Android device sold. In fact, that would be twice per unit Microsoft is believed to be receive for each HTC Android device sold. You can read the entire article on Bloomberg‘s website, but here I’m going to go off on a little rant…

I disagree with this argument. Forget the fact that Apple never listens to analysts (be glad they don’t) and analysts can never predict anything correctly when it comes to Apple, but what Rivette forgets is that Apple doesn’t need the royalty money from Android phones. Nope, not one bit. In fact, Apple isn’t Microsoft. Period. What I mean by this is that Microsoft only makes software, while Apple makes hardware and integrated systems. This allows Apple to make money on hardware it develops and take control year after year on the product it develops (iPod, iPhone, iPad). The money lies here. With over $80 Billion in cash, it is very apparent that Apple is not in the game for a few bucks, but instead in the game for the big bucks.  Also, by taking this route Apple would lose one key  competitive  advantage over its competitors  â€” innovation.  In fact, the key reason why companies are copying Apple is so they can take advantage of their success. The copying is so accurate that Samsung lawyers couldn’t even tell their products apart. Apple’s battle with Samsung is only one of the countless number of cases Apple is fighting against copycats.

Why exactly should a company that’s innovating, thinking of innovative products first, leading in design, and is extremely profitable resort to such an extreme  measure?

 

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Author: Parth Dhebar
Parth Dhebar is a 18 year-old entrepreneur. He is the founder of Simple Reviews, a blog focused on reviewing iPhone and iPad applications. Parth is a recognized name in the industry, known for covering Apple news. He is an editor at Techie-Buzz covering news on Apple. You can follow him on Twitter @pdparticle.

Parth Dhebar has written and can be contacted at parth@techie-buzz.com.
  • Maximiliano Villarreal

    Low quality, zero research, biased opinion. Such a pity. TechieBuzz is falling behind :( its sad

 
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