HTC 2013 Annual Report Download - page 27

BUSINESS OPERATIONS BUSINESS OPERATIONS
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Principal Contractual Agreements
The Company specializes in the research, design, manufacture and sale of smart mobile devices. To
enhance the quality of its products and manufacturing technologies, the Company has patent agreements,
as follows:
Contractor Contract Term Description
Apple, Inc. November 11, 2012 - November 10, 2022 The scope of this license agreement covers
both the current and future patents held by
the parties as agreed upon and specifically set
forth in the agreement, with royalty payable as
prescribed.
Microsoft February 1, 2009 - March 31, 2015 Authorization to use embedded operating
system; royalty payment based on agreement.
Qualcomm Incorporated. December 20, 2000 to the following dates:
a. If the Company materially breaches any
agreement terms and fails to take remedial
action within 30 days after Qualcomm's
issuance of a written notice, the Company
will be prohibited from using Qualcomm's
property or patents.
b. Any time when the Company is not using
any of Qualcomm's intellectual property,
the Company may terminate this agreement
upon 60 days' prior written notice to
Qualcomm.
Authorization to use CDMA technology to
manufacture and sell units; royalty payment
based on agreement.
Nokia Corporation January 1, 2003 - December 31, 2016 Authorization to use wireless technology, like
GSM; royalty payment based on agreement.
Nokia Corporation January 1, 2014 – December 31, 2018 Patent and technology collaboration; payment
for use of implementation patents based on
agreement.
InterDigital Technology
Corporation
December 31, 2003 to the expiry dates of these
patents stated in the agreement.
Authorization to use TDMA and CDMA
technologies; royalty payment based on
agreement.
KONINKLIJKE PHILIPS
ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these
patents stated in the agreement.
GSM/DCS 1800/1900 patent license; royalty
payment based on agreement.
MOTOROLA, Inc. December 23, 2003 to the latest of the
following dates:
a. Expiry dates of patents stated in the
agreement.
b. Any time when the Company is not using
any of Motorola's intellectual properties.
TDMA, NARROWBAND CDMA, WIDEBAND
CDMA or TD/CDMA standards patent license
or technology; royalty payment based on
agreement.
Siemens Aktiengesellschaft July 2004 to the expiry dates of these patents
stated in the agreement.
Authorization to use GSM, GPRS or EDGE patent
license or technology; royalty payment based on
agreement.
IV International Licensing
Netherlands, B.V.
November 2010 - June 2020 Authorization to use wireless technology; royalty
payment based on agreement.
Production and Sales for the Most Recent
Two-Year Period
Production
Unit: 1,000 units / NT$ millions
2013
Production Capacity Production Quantity Production Value
Smartphones 38,550 20,345 129,184
Total 38,550 20,345 129,184
Unit: 1,000 units / NT$ millions
2012
Production Capacity Production Quantity Production Value
Smartphones 59,517 32,863 168,434
Total 59,517 32,863 168,434
Note: Production capacity represents the normal capacity of current production equipment after making adjustments for necessary production stoppages, non-
work holidays, etc.
Sales
Unit: 1,000 units / NT$ millions
2013
Domestic Sales Export Sales
Quantity Value Quantity Value
Smartphones and other items (accessories) 3,024 19,653 97,233 180,555
Total 3,024 19,653 97,233 180,555
2012
Domestic Sales Export Sales
Quantity Value Quantity Value
Smartphones and other items (accessories) 7,545 20,338 139,070 262,577
Total 7,545 20,338 139,070 262,577
Note: Main product item data not inclusive of income from maintenance / repairs or product development work.