x PhoneArena is hiring! Reviewer in the USA
  • Hidden picShow menu
  • Home
  • News
  • Nokia's technology unit about to line its pockets with Samsung cash

Nokia's technology unit about to line its pockets with Samsung cash

Posted: , by Luis D.

Tags:

Nokia's technology unit about to line its pockets with Samsung cash
Today, Nokia settled a long-standing dispute with business partner Samsung over wireless technology licenses, netting a cool $2.5 billion ($2.32 billion EUR) in projected sales following the deal. Although the Finnish company, whose current bread and butter is technological licensing, is about to line its pockets with hundreds of millions of euros, investors are nevertheless displeased.

Nokia's share value fell a whopping 10% soon after the announcement, with Danske Capital analyst Juha Varis explaining that the company is unable to meet expectations of its patent portfolio generating more profit than rival Ericsson's. Moreover, the annualized sales run-rate for Nokia's patent unit after the Samsung settlement is about $866,272 million (800 million euros), while Ericsson (which signed with Apple recently) has a run-rate of about $1.3 billion (1.2 billion euros). Some investors criticized Nokia's communication of the settlement and expressed surprise over the scale of the price movement. They are "left wondering on the Technologies unit's actual topline forecast for 2016," said Varis.

Nokia is also expected to start talks over a new contract with Apple sometime in the coming years.

As for itself, Nokia hopes its patent pension will improve over the next years, which shall be aided by an ongoing dispute with LG, similar to that with Samsung, that the Finns are yet to settle. Nokia is also expected to start talks over a new contract with Apple sometime in the coming years.

Can these long-term promises turn investor frowns to smiles of content? We'll see when the time comes to talk results, rather than expectations.

source: Reuters via The Verge

16 Comments
  • Options
    Close




posted on 01 Feb 2016, 07:21 3

1. sip1995 (Posts: 1552; Member since: 07 Feb 2014)


Just make a phone.....jeeez

posted on 01 Feb 2016, 07:42 3

2. Finalflash (Posts: 2772; Member since: 23 Jul 2013)


I think they can start this year.

posted on 01 Feb 2016, 08:34

8. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)


they cannot... they will be free from microsoft in december 2016... I cannot see a way for them to release a phone with a thin margin of december itself...

posted on 02 Feb 2016, 03:44

13. JumpinJackROMFlash (Posts: 448; Member since: 10 Dec 2014)


It's not like they'll start designing it in December...

posted on 01 Feb 2016, 11:51

11. jroc74 (Posts: 5986; Member since: 30 Dec 2010)


Yea I thought this was about some partnership on a phone. Oh well.

posted on 03 Feb 2016, 05:44

15. korean411 (Posts: 78; Member since: 04 May 2009)


well Microsoft bought the Nokia mobile division which got re-branded as Microsoft Mobile. As a company Nokia is focusing their profitable network equipment technologies and of course licensing. The company that makes the lumia phones now is Microsoft.

posted on 01 Feb 2016, 07:53

3. lyndon420 (Posts: 3851; Member since: 11 Jul 2012)


Hopefully they can survive and eventually florish without signing any agreements with apple.

posted on 01 Feb 2016, 08:20 1

5. SIGPRO (Posts: 1376; Member since: 03 Oct 2012)


They earn a lot of money with patents, if Nokia denies patent licenses to apple......simply iphones will eventually die. And no money for Nokia, so they will license to apple......money talks!

posted on 01 Feb 2016, 08:24

6. lyndon420 (Posts: 3851; Member since: 11 Jul 2012)


I like your logic. I think Nokia would make more money selling phones after apple's demise. So yeah...no license deals with apple please and thank-you :).

posted on 01 Feb 2016, 08:28

7. SIGPRO (Posts: 1376; Member since: 03 Oct 2012)


True, but they will be back with phones don't worry ;)

posted on 01 Feb 2016, 09:48

9. Ashoaib (Posts: 3229; Member since: 15 Nov 2013)


they cannot deny apple because they have already made a deal with other manufacturers... apple will bring a law suit if they will ever do that

posted on 01 Feb 2016, 10:26

10. lyndon420 (Posts: 3851; Member since: 11 Jul 2012)


We would expect apple to litigate...it's the one thing they do well. And just because Nokia works with everyone else it doesn't mean they have to work with apple as well.

posted on 02 Feb 2016, 03:44

14. JumpinJackROMFlash (Posts: 448; Member since: 10 Dec 2014)


Of course they can. It's not illegal to not license patents.

posted on 01 Feb 2016, 08:18 1

4. SIGPRO (Posts: 1376; Member since: 03 Oct 2012)


Nokia will not die, they have 61.000 employees.
2nd in the world manufacturing and distributing network equipment!

posted on 01 Feb 2016, 14:14

12. akki20892 (Posts: 3900; Member since: 04 Feb 2013)


i'm waiting for Nokia phone.........android this time.

posted on 03 Feb 2016, 05:46

16. korean411 (Posts: 78; Member since: 04 May 2009)


That is up to Microsoft since they own the Nokia mobile division now.

Want to comment? Please login or register.

Latest stories