Nokia Continues To Received Profit With Samsung Patent Deal
For some, they think that Nokia may have already retired from global phone market, but it still got pension to collect in form of patent licenses from decades of R&D.
Recently, the company announced that settled a dispute with Samsung over licensing of technologies, boosting Finnish firm’s by hundreds of millions of euros.
The Nokia’s dedicated patent, Nokia Technologies, says that it expects sales of around €1.02 billion in 2015 following the said deal, with additional of €1.3 billion in 2016 to 2018.
Unfortunately, this record of sales was not enough to satisfy investors. Although settlement increases sales in Nokia’s patent from €578 million in 2014 to €800 million, analysts expected more and predicting around €900 million.
Nokia’s shares consequently fell 10 percent, Swedish bank analyst Nordea telling Reuters: “There have been expectations that Nokia could make more money with their patent portfolio than Ericsson. This outcome did not support that. Estimates will be revised.” Nokia says it spent more than €50 billion on R&D over past two decades, collecting 30,000 individual patents in process.
The company sold its phone business in Microsoft last 2013 and last year it negotiated €15.6 billion as takeover of French telecoms firm Alcatel-Lucent. Investors worry that the deal will cause some trouble for Nokia as it tries to integrate two companies.
Nokia hope its patent pension can be still be boosted in next few years to keep shareholders happy thankfully, the company has an ongoing dispute with LG that it’s yet to settle.