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Nokia made more money from Apple than from selling phones last quarter

Posted: , by Daniel P.

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Nokia made more money from Apple than from selling phones last quarter
An insider familiar with the terms of the patent licensing deal between Nokia and Apple, said the settlement deal brought the Finnish phone maker $600 million last quarter.

This huge amount of royalties was padded by the record-breaking quarter for Apple, which sold 35.1 million phones in the January-March period, hence had to pay patent license fees for more units.

Compared to its GAAP results that recorded a 5% loss from the phone business in Q1, Nokia's patents are likely to become a huge cash cow for the company, so it has something to fall back on if the Lumia Windows Phone handset sales don't take off as expected. 

Nokia's current market cap is just $14 billion, so it will be interesting to see if the Redmond giant will swoop in at some point to add to its patent war chest, or acquire total control of the Finns' smartphone business in some way. After all, Microsoft sits on $60 billion in cash, and gave $8 billion for Skype not long ago.

source: AppleInsider & Nokia (Google Finance)

22 Comments
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posted on 27 Apr 2012, 04:07 1

1. RobotMan (Posts: 124; Member since: 13 Apr 2012)


"Redmond giant will swoop in at some point to add to its patent war chest, or acquire total control of the Finns' smartphone business in some way"

He. he.he..

posted on 27 Apr 2012, 04:11

2. plgladio (Posts: 311; Member since: 05 Dec 2011)


Oh!
Why Apple is not interested to buy it for a huge cash rather?

posted on 27 Apr 2012, 04:24

3. PhoneArenaUser (Posts: 4612; Member since: 05 Aug 2011)


Buy what?

posted on 27 Apr 2012, 04:39

5. raunak (Posts: 490; Member since: 12 Oct 2011)


those patents

posted on 27 Apr 2012, 04:46 6

6. PhoneArenaUser (Posts: 4612; Member since: 05 Aug 2011)


Maybe Nokia don't sell them ?!

posted on 27 Apr 2012, 05:35 3

8. 99n100 (Posts: 16; Member since: 06 Apr 2012)


What's make you think that Nokia will sell since it is a cash cow?

posted on 27 Apr 2012, 05:42

9. plgladio (Posts: 311; Member since: 05 Dec 2011)


What about paying more than they need, they are accepting now since they are not running business in that cash, but they are slowly coming down in market, so they might need more money to run.. In that way I thought about selling the patents.

posted on 27 Apr 2012, 05:54

11. deacz (Posts: 147; Member since: 02 Nov 2011)


Nokia has tons of cash atm

posted on 27 Apr 2012, 06:14 2

12. PhoneArenaUser (Posts: 4612; Member since: 05 Aug 2011)


And what Nokia will gona do without the patents?

posted on 27 Apr 2012, 10:43 1

21. 99n100 (Posts: 16; Member since: 06 Apr 2012)


I don't think Nokia will be so desperately to sell their assest now, otherwise, their credit rating will drop more drastically.

posted on 27 Apr 2012, 04:38 5

4. raunak (Posts: 490; Member since: 12 Oct 2011)


i really want nokia to be successful again..nokia has already lost half of its identity and i'll really hate it if MS totally acquires nokia's smartphone business

posted on 27 Apr 2012, 04:47 4

7. PhoneArenaUser (Posts: 4612; Member since: 05 Aug 2011)


In mine opinion MS really can do that.

posted on 27 Apr 2012, 05:43 4

10. plgladio (Posts: 311; Member since: 05 Dec 2011)


That also might happen, saying they need a mobile company.
Like how they acquired Skype..

posted on 27 Apr 2012, 06:15 1

13. PhoneArenaUser (Posts: 4612; Member since: 05 Aug 2011)


Agree, also Nokia has a lot patents.

posted on 27 Apr 2012, 06:28

15. haseebzahid (Posts: 1775; Member since: 22 Feb 2012)


Ms has higer potential then just gettnig Nokia it can go for APPLe as well in future since everyone is paying MS in some way even Apple and android

posted on 27 Apr 2012, 06:25

14. Droid_X_Doug (Posts: 5283; Member since: 22 Dec 2010)


Another company in the same position as Nokia (large collection of patents being licensed) is MS. MS is making more off licensing from Android handset manufacturers than they are making from WP license fees. If MS bagged WP and just focused on their licensing, they would have a better financial result.

posted on 27 Apr 2012, 10:39

20. Penny (Posts: 988; Member since: 04 Feb 2011)


Or, you know, they could do both. Which they are now.

posted on 27 Apr 2012, 15:15

22. Droid_X_Doug (Posts: 5283; Member since: 22 Dec 2010)


MS has dropped probably close to $2 billion on all iterations of their mobile OS (it might be more, since MS ain't fessing up). One article I read asserted that MS makes approximately $500 million/year in licensing fees paid by Android manufacturers. If MS had passed on their mobile OS, they would have a net profit of at least $1 billion to show for their licensing efforts in the mobile space. Instead, they have maybe broken even.

posted on 27 Apr 2012, 08:12

16. mercorp (Posts: 954; Member since: 28 Jan 2012)


NOKIA GOT $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$...​.

posted on 27 Apr 2012, 08:12 2

17. mercorp (Posts: 954; Member since: 28 Jan 2012)


BUT I WANT AN ANDROID PUREVIEW.

posted on 27 Apr 2012, 08:24

18. APPLE_ROYALLY (Posts: 25; Member since: 24 Apr 2012)


We like that®

posted on 27 Apr 2012, 09:05

19. Yassham (Posts: 27; Member since: 09 Jan 2011)


If Nokia has $14 billion and Microsoft has $60 billion , Apple tops with $80 billion !

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