It is known to us that Nokia had a business dispute with Apple. The reason was, Nokia brought legal actions against Apple because Apple violated the technology patents. On the other hand, Apple Inc. complained of being overcharged. The disputes continued for quite some time.
Now, it looks like both Nokia and Apple are prepared once again to make a deal and settle the dispute. According to Nokia, in the new deal, they are going to receive an upfront cash payment. They will also get additional revenues from Apple Inc. from the present quarter. But the company didn’t reveal any details of the amount.
According to analysts, they thought the dispute would run for quite some time. The companies resolved it quite quickly. The lawsuit filed by Nokia comprised of 32 patents including the software, the display, video coding and also the interface. It is good news for Nokia that they could get out of the tussle with Apple in this way. Still, we are waiting for the details about the financial impact. Previously, the annual rate was 150 million euros, so we are assuming this time it will be more around 500 million euros.
What exactly Apple Inc. and Nokia will exchange in the deal?
In their new business deal, Nokia said they would provide an entirely new network infrastructure, services, and products for Apple Inc. On the other hand, Apple is going to start carrying the digital health products of Nokia in the online and retail stores once again. According to Nokia, the agreement is pretty meaningful for Nokia.
The deal will shift relationship of Apple Inc. and Nokia from adversaries in court to the business partners. Apart from the revenue generated from the agreement, Nokia will also receive a non-recurring additional revenue will also start running from this quarter. Both the companies are exploring the collaboration in the digital health initiatives.
Nokia expects that the revenues for this agreement will start from the third quarter of 2017. Since Apple is directly offering cash to Nokia, they will provide a detailed update on the capital infrastructure optimisation program during the third quarter of 2017.