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Apple Requests Samsung Be Forced To Pay $40 Per Phone

Daily Insight | Boris Metodiev | March 14, 2014

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The latest edition of the ongoing patent battle between mobile giants Apple and Samsung is scheduled to get under way on March 31, and Apple has put forth a unique demand. The company wants Samsung to pay US$40 for each phone sold that uses Apple-patented technology.

 

According to CNN Money, U.S. District Court Judge Lucy Koh will allow Apple to present its request before the jury in the case. Apple is looking for Samsung to pay for the use of five patents: phone number tapping, unified search, data synchronization, slide-to-unlock and autocomplete. The $40 figure requested by Apple is raising eyebrows around both the tech and legal industries. In previous patent fights with Samsung, Apple had demanded the Korean OEM pay royalties of $3.10 and $2.02 per device for “pinch to zoom,” “over scroll bounce” and “tap to zoom.”

 

Yankee Group Senior Analyst Boris Metodiev comments

 

“The Apple-Samsung patent saga continues and the new Apple request is nothing short of extraordinary. According to Yankee Group’s Mobile and Connected Devices Forecast & Monitor, January 2014, in Q3 the average selling price (ASP) of Samsung’s devices was US$229.91 at an 18.3 percent operating margin, which means that the South Korean vendor made US$42.07 profit per device, more or less the amount demanded by Apple. We don’t know exactly how many of Samsung's devices would be affected by the ruling, so that is just a very rough estimate, but Apple’s claim still looks ridiculous and I have no idea how it came up with that number.

 

Apple most certainly knows that it won’t be awarded the requested amount, but it probably tries to aim high with the hope that whatever it gets, it will still hit Samsung hard financially. This is just another example of the futility of the whole patent battle in which the two smartphone giants have been involved.”

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