HTC denies increase in Microsoft licensing fees

HTC denies increase in Microsoft licensing fees: "(Telecompaper) HTC has denied reports that Microsoft plans to boost the licensing fees for Android mobile phones. According to a report from Citibank Securities, Microsoft plans to raise the fee on Android phones produced by HTC to USD 7.5-12.5 per unit, from the existing USD 5. Citibank pointed out that the spike in licensing fees will impact the profit margin at HTC, as the operating profit on Android mobile phones reaches only 10-15 percent. Should Microsoft raise its licensing fee to USD 7.5 per unit, HTC will see its payments fee to Microsoft rise to TWD 9 billion this year, equivalent to its paid-in capital, up from the original expectation of TWD 6 billion. HTC said in a statement to the stock market that it signed a licensing agreement with Microsoft last year and the related costs have been reflected in its financial statements. However, 'Microsoft has not demanded HTC to raise royalties on smart phones' and 'related media reports about increasing royalties are untrue', HTC said."

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