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HTC Rebounds After Shares Crashed Following ITC Ruling

Shares of Taiwanese smartphone manufacturer HTC fell by nearly four per cent yesterday after Apple scored a significant legal victory against its rival but managed to claw back more than 2.5 per cent today.

The US International Trade Commission sided with Apple, saying that HTC has violated two Apple patents out of the ten that were initially filed by the US-based company back in 2010.

Shares of HTC in Taipei were down NT$36 to NT$871 but gained NT$22 pushing the price nearer to NT$900, valuing the company at around NT$730 billion. At the beginning of the day yesterday though, things looked even bleaker as HTC stocks flirted with the NT$850 line.

Other smartphone manufacturers selling in the US like Motorola, Sony Ericsson, LG and Samsung are likely to follow the legal proceedings very closely as it might impact their businesses as well, as the disputed patents are at the heart of Google's Android OS.

Apple has asked for HTC products to be removed from sale in the US rather than seeking any specific licensing fees from the Taiwanese company.

Together with Samsung, HTC is generally considered as being one of Apple's most capable competitors, which may explain why the US company wants the ruling to be given as quickly as possible.

HTC purchased S3 graphics in early July, a move that allowed it to gain a precious set of patents that it may use against Apple after the ITC said Apple had illegally used them.