By: Jeffrey Wu
Source: http://focustaiwan.tw
Category : Patent Infringement
Taipei, Dec. 21 (CNA) A final patent ruling by the U.S. International Trade Commission (ITC) will have limited impact on HTC Corp. in the short term, foreign institutional investors said Wednesday.
On Dec. 19 in the United States, the ITC reversed part of its initial determination reached in July and ruled that HTC infringed on only one Apple Inc. patent.
The "647" patent involves data-detection technology that allows users to click on a phone number in an e-mail and immediately be connected.
The commission further determined that the appropriate remedy is a limited exclusion order prohibiting the entry of devices carrying the infringed-upon patent into the U.S. market.
Goldman Sachs, which maintained a "Buy" rating on HTC and a target price of NT$890 (US$29.46), said HTC's loss in the lawsuit was in line with its view as the most likely scenario.
"We see limited fundamental impact on HTC from the limited exclusion, which will be less than 2 percent of its total shipments, as such an order would likely apply to HTC's older models, which now represent only a minor portion of HTC shipments," Goldman Sachs analyst Robert Yen wrote in a note to clients.
"We believe the weakness of product cycle and this patent case with Apple are the major reasons HTC's share price has more than halved in the past six months. We expect HTC's share price to recover shortly on the better-than-expected ruling," Yen said.
But the brokerage also said that all Android device makers might continue to face ongoing patent lawsuits against third parties, such as Oracle, Microsoft and British Telecom, potentially raising concerns on Android's further market share gain.
J.P. Morgan said that HTC shipments will be unlikely to be impacted next year because an import ban on its infringed products to the U.S. will not take effect until April 19.
J.P. Morgan said HTC can still sell smartphones in the upcoming holiday period, and that HTC already has plans to overhaul its U.S. product offering by the end of the first quarter next year. It retained a stock rating of "neutral" and a target price of NT$445.
J.P. Morgan said HTC's long-term growth rate has shifted into much lower gear until the expected TD-LTE-enabled products come onto the market, which might give HTC a technical edge in the China market.
Meanwhile, Morgan Stanley said its fundamental concerns center more on structural issues than on litigation risks, expecting the ITC ruling will have limited impact on HTC's sales in the U.S.
"A rapid change in the smartphone market and rising competition seem likely to leave HTC not structurally well placed for the next wave," the bank said in a research note.
"Regardless of this litigation risk, HTC has been losing shares quickly in the U.S., as evidenced by its reduced shipment target, and our latest U.S. survey shows that the trend might not reverse in the short run," it said.
Morgan Stanley added that HTC's real threat comes from others in the Android camp -- both from the high-end (mainly Samsung) and the mid- to low end (China-based names) -- while wider distribution of Apple's iPhone 4S will largely eat into its pie.
Source: http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201112210014
Source: http://focustaiwan.tw
Category : Patent Infringement
 |
| HTC Patent Infringement |
On Dec. 19 in the United States, the ITC reversed part of its initial determination reached in July and ruled that HTC infringed on only one Apple Inc. patent.
The "647" patent involves data-detection technology that allows users to click on a phone number in an e-mail and immediately be connected.
The commission further determined that the appropriate remedy is a limited exclusion order prohibiting the entry of devices carrying the infringed-upon patent into the U.S. market.
Goldman Sachs, which maintained a "Buy" rating on HTC and a target price of NT$890 (US$29.46), said HTC's loss in the lawsuit was in line with its view as the most likely scenario.
"We see limited fundamental impact on HTC from the limited exclusion, which will be less than 2 percent of its total shipments, as such an order would likely apply to HTC's older models, which now represent only a minor portion of HTC shipments," Goldman Sachs analyst Robert Yen wrote in a note to clients.
"We believe the weakness of product cycle and this patent case with Apple are the major reasons HTC's share price has more than halved in the past six months. We expect HTC's share price to recover shortly on the better-than-expected ruling," Yen said.
But the brokerage also said that all Android device makers might continue to face ongoing patent lawsuits against third parties, such as Oracle, Microsoft and British Telecom, potentially raising concerns on Android's further market share gain.
J.P. Morgan said that HTC shipments will be unlikely to be impacted next year because an import ban on its infringed products to the U.S. will not take effect until April 19.
J.P. Morgan said HTC can still sell smartphones in the upcoming holiday period, and that HTC already has plans to overhaul its U.S. product offering by the end of the first quarter next year. It retained a stock rating of "neutral" and a target price of NT$445.
J.P. Morgan said HTC's long-term growth rate has shifted into much lower gear until the expected TD-LTE-enabled products come onto the market, which might give HTC a technical edge in the China market.
Meanwhile, Morgan Stanley said its fundamental concerns center more on structural issues than on litigation risks, expecting the ITC ruling will have limited impact on HTC's sales in the U.S.
"A rapid change in the smartphone market and rising competition seem likely to leave HTC not structurally well placed for the next wave," the bank said in a research note.
"Regardless of this litigation risk, HTC has been losing shares quickly in the U.S., as evidenced by its reduced shipment target, and our latest U.S. survey shows that the trend might not reverse in the short run," it said.
Morgan Stanley added that HTC's real threat comes from others in the Android camp -- both from the high-end (mainly Samsung) and the mid- to low end (China-based names) -- while wider distribution of Apple's iPhone 4S will largely eat into its pie.
Source: http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201112210014
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