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$862m isn't that huge in the grand scheme of things. Not to mention, it's most likely not going to be $862m, my guess is it'll be less.

It's more than double what Apple paid for P.A. Semi and Intrinsity put together, the fabless semiconductor design firms that are the foundation of Apple's processor engineering capabilities.

That's really more an indictment of how little PASemi and Intrinsity sold for (in a world where WhatsApp sells for $20 billion).

I take your point, but if I were to pick any of those valuations as being adrift from reality it wouldn't be those for P.A. Semi or Intrinsity.

As you said: P.A. Semi and Intrinsity are "the foundation of Apple's processor engineering capabilities." That might have been their market value, but I think it's fair to say that the value to Apple was far greater (i.e. Apple got a huge purchaser's surplus in the deal).

Yup, no argument there. They've converted that talent into a significant advantage for their platforms.

>$862m isn't that huge in the grand scheme of things.

Well, it normalizes large patent payment damages which isn't good and guarantees that non-giant companies will never, ever be able to compete in this space because investors are spooked over random near $1b lawsuits.

Big companies seem to not mind the patent status quo for some reason. I suspect it just keeps competition away by raising the barrier to entry. This should be concerning to all. The refrain of "Apple can afford it" is scary as Apple is the world's wealthiest company. Of course they can afford it. That's besides the point.

If it's $862m, last I checked, it will take them about 30 hours to bring in the necessary revenue--if they want to pay out of profits (I'm totally guessing here, what are real net margins on their hardware? 15-20%?), it'll take a couple days.

Man, that's such a humbling stat. Many of us here don't even earn that in a year!

$862 million?

> Man, that's such a humbling stat. Many of us here don't even earn that in a lifetime!


Unless I missed the /s ;)

Even more exaggerated than that. Many families don't earn that across several generations. That's about 17,000 years at $50,000/year. At 40 years of working life, you'd need over 400 people.

The combined income earned by anyone in the entirety of history who is the least bit related to me, adjusted for PPP, probably does not equal $800MM+.

Is this a weird meta-joke where you pretend to miss the joke?

We're also talking about one of the largest companies in the world, so it's really not that shocking.

And Apple saves a lot of money by not paying taxes /s

Oh it's just Apple?

No of course not. There's also Facebook, Amazon etc. etc. etc. But the article is about Apple.

Don't forget UWisc!

this is the best! I certainly don't make this much in a year.

It would take ~8 days of net income (they declared $10 billion of net income in the most recently reported quarter).

Given that large companies face large numbers of patent suits however, typically litigating several in parallel, spending all this money on just one could indeed be seen as distressing.

If it keeps smaller companies out of the market because they are not able to join patent cross-licensing cartels, then it may be a price worth paying.

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