Windows Phone may benefit from Nokia-Apple patent deal
14 Jun 2011
Nokia and Apple announced a patent licence agreement on Monday that settles a long and bitter dispute.
The Nokia-Apple agreement followed by the withdrawal by the two companies of their respective complaints to the US International Trade Commission (ITC) closes a difficult chapter in the relationship between the two companies.
Nokia said yesterday that the agreement covers a one-time payment made by Apple and the ongoing royalties to be paid by Apple to Nokia for the term of the agreement, but the companies did not reveal specific terms of the contract or its length, noting that they were confidential.
Nokia's stock had taken a heavy beating recently after the company revealed its second quarter outlook was not encouraging. Downgrading its own outlook, it said it expected device and services net sales to be "substantially below" its previous estimates.
The revelations saw the company's stock price fall 15 per cent on the NYSE earlier this month. With investors turning their backs on the company, the prospects over the short and long term appear uncertain.
According to research analysts IDC and Gartner's projections, Microsoft's Windows Phone devices would beat iPhone sales by 2015. According to analysts, the deal between Nokia and Apple would likely benefit Windows Phone in the long term.
