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

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.

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

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9 Comments

1. sip1995

Posts: 1771; Member since: Feb 07, 2014

Just make a phone.....jeeez

2. Finalflash

Posts: 4063; Member since: Jul 23, 2013

I think they can start this year.

8. Ashoaib

Posts: 3276; Member since: Nov 15, 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...

13. JumpinJackROMFlash

Posts: 464; Member since: Dec 10, 2014

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

11. jroc74

Posts: 6023; Member since: Dec 30, 2010

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

15. korean411

Posts: 92; Member since: May 04, 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.

4. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

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

12. akki20892

Posts: 3902; Member since: Feb 04, 2013

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

16. korean411

Posts: 92; Member since: May 04, 2009

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

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