The settlement includes a 10-year agreement under which the companies will license current and future patents from each other, they said in a brief statement. The terms of the settlement are confidential and were not disclosed.
The patent dispute between the companies, one of many being fought in the mobile device industry, began in March 2010 when Apple filed suits at the International Trade Commission and US District Court for Delaware accusing HTC of patent infringement.
HTC hit back with its own lawsuit and the fight escalated.
The top executives from each company provided much the same commentary in the joint statement.
Peter Chou, CEO of HTC, said, "HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation," while Apple CEO Tim Cook said, "We are glad to have reached a settlement with HTC. We will continue to stay laser focused on product innovation."
Apple was the world's number two smartphone maker in the second quarter, accounting for 16.7 percent of shipments, according to research from IDC. HTC was in fourth place with a share of 5.8 percent, IDC said.