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

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)

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22 Comments

1. RobotMan

Posts: 145; Member since: Apr 13, 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..

2. plgladio

Posts: 314; Member since: Dec 05, 2011

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

3. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Buy what?

5. raunak

Posts: 507; Member since: Oct 12, 2011

those patents

6. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Maybe Nokia don't sell them ?!

8. 99n100

Posts: 16; Member since: Apr 06, 2012

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

9. plgladio

Posts: 314; Member since: Dec 05, 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.

11. deacz

Posts: 162; Member since: Nov 02, 2011

Nokia has tons of cash atm

12. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

And what Nokia will gona do without the patents?

21. 99n100

Posts: 16; Member since: Apr 06, 2012

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

4. raunak

Posts: 507; Member since: Oct 12, 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

7. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

In mine opinion MS really can do that.

10. plgladio

Posts: 314; Member since: Dec 05, 2011

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

13. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Agree, also Nokia has a lot patents.

15. haseebzahid

Posts: 1853; Member since: Feb 22, 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

14. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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.

20. Penny

Posts: 1859; Member since: Feb 04, 2011

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

22. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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.

16. mercorp

Posts: 1045; Member since: Jan 28, 2012

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

17. mercorp

Posts: 1045; Member since: Jan 28, 2012

BUT I WANT AN ANDROID PUREVIEW.

18. APPLE_ROYALLY

Posts: 25; Member since: Apr 24, 2012

We like that®

19. Yassham

Posts: 28; Member since: Jan 09, 2011

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

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