Apple (AAPL : NASDAQ : US$332.44), Net Change: 5.84, % Change: 1.79%, Volume: 11,868,971
Nokia (NOK : NYSE : US$6.26), Net Change: 0.15, % Change: 2.45%, Volume: 58,398,100
iSettle. Nokia and Apple have agreed to settle all outstanding patent litigation, which will see Nokia receive an unspecified onetime payment from Apple as well as ongoing royalties. The dispute began in 2009 when Nokia first asked for royalties from Apple, claiming that the iPhone violated 10 patents, and followed up with more complaints that the iPad infringed some patents.
By the end of it, Nokia was claiming Apple had infringed 46 of its patents. While terms of the deal were not disclosed, analysts speculate Apple will pay Nokia 1-2% of iPhone revenue, which could be as much as $43 million this year and is expected to add to Nokia’s Q2 results. The news is a positive for Nokia who has struggled of late, as it moves away from its Symbian operating system and attempts to re-establish a dominant spot in the smartphone market. A Japanese bank said on Monday that it expects Samsung to overtake Nokia as the world’s largest provider of smartphones by the end of the second quarter this year.
Additionally, the bank believes Apple will also surpass Nokia in terms of handsets sold. Commenting on the outcome, a Nokia spokesman said, “Clearly with [Monday's] announcement we have achieved the end we want which is Apple becoming a Nokia licensee. This ensures that we’ll get the appropriate return on the EUR43 billion or so that we’ve spend over the past few
decades on our R&D."