fbpx

Ever since it decided to sell off its devices division to Microsoft for $7.2 billion, Nokia hasn’t exactly been front-of-mind in smartphone discussions for most people. After all, under the terms of that agreement, Nokia isn’t allowed to sell any smartphones for some extended period of time, so you would assume that the company is no longer making any money on mobile device hardware. And you’d be wrong. As in billions of dollars wrong.

Earlier this morning, Nokia announced that it had come to terms over a dispute with Samsung over patent licensing wherein the latter would pay the former to license a range of technologies. That effectively means the Finnish firm can continue to profit off work it had done years ago without actually making anything new. That’s good. So good, in fact, that they’re forecasting sales of 1.02 billion euros (about $1.1 billion US) for 2015, followed by about 1.3 billion euros ($1.4 billion US) for 2016, as well as in 2017 and 2018.

That’s not all Samsung money; it’s how much Nokia Technologies, the patent protecting arm of Nokia, is expected to garner in sales for those periods. Compare that to the 578 million euros ($630 million US) for 2014. Good news, right? Yes and no. It’s good that Nokia is raking in some dough, but apparently it’s not enough dough for investors. Shares in Nokia dropped more than 10 percent after announcing the deal with Samsung, whereas Samsung shares rose about 1.1 percent.

But hey, Samsung isn’t the only company that Nokia is going after for patent money. They’re still in dispute with LG, plus there are plans to negotiate a new contract with Apple soon too. It looks like getting out of the smartphone business and into the legal business may have been one of the best moves Nokia has made in a while.


Via Reuters

Share This With The World!
  •  
  •  
  •  
  •  
  •  
  •  
  •