Amid a patent infringement ruling in favour of Apple by the ITC, HTC's share price has taken a tumble and the company is looking at buying back a not insignificant 20 million shares. HTC is expected to give half of the shares to employees while the other half will be cancelled.

 

Amid a patent infringement ruling in favour of Apple by the ITC, HTC's share price has taken a tumble and the company is looking at buying back a not insignificant 20 million shares. HTC is expected to give half of the shares to employees while the other half will be cancelled.

HTC's shares have dropped to a six month low of NT$870 (S$36/US$30) and the company is now springing into action to prevent a further drop in the share price. More than half of HTC's outstanding shares are owned by foreign investors and with a lot of negative feedback from various investment companies the share price has suffered.

However, the patent infringement dispute with Apple isn't the only reason why HTC's shares have been falling even though it's the most recent contributor, as overall HTC's share price has dropped by 20 percent since the 6th of July. HTC is of course appealing the ruling and even before that happens; the ITC still has to review the ruling by the judge and come to the same conclusion as the judge.

Worst case, Apple could demand a ban on HTC's devices into the US, although it's more likely that the two companies will settle outside court before it gets to this. Also remember that these kinds of things tend to take a lot of time and an import ban is highly unlikely. The scary thought is that if Apple would come out victorious, it would put precedence in Apple's favour against other Android handset makers who could also potentially be banned from selling their devices in the US. We have a feeling that a small company known as Google will interfere before it gets to this stage though, but it's a scary thought nonetheless.