Investors react favorably to HTC and Apple’s patent licensing agreement – stock rises 6.86 percent
Investors seem to agree that the HTC and Apple cross-licensing agreement which was announced late on Saturday is a good thing for HTC. The company’s stock price opened 6.86 percent (the maximum allowed on Taiwan’s stock exchange) higher this morning and maintained its gains throughout the day as the broader market fell 0.15 percent.
The cross-licensing deal between HTC and Apple was announced as part of a settlement between the two companies which end all of their legal disputes. Terms of the deal are confidential, but the agreement should allow both companies to focus more on new handset development and software innovation rather than working on way to program around each other’s patents.
HTC’s stock price has risen 24.5 in the past two weeks, but investors are predicting that the recent uptick will be short lived. HTC has been struggling to compete with the likes of Samsung and Sony within the Android market place and the company’s commitment to Window phone may not pay off if Microsoft is not willing to flex its marketing muscle.
Source: Yahoo News