Deutsche Bank analyst Kai Korschelt on Tuesday estimated that Nokia stands to make a pretty penny off of royalty payments from Apple moving forward. Nokia announced early on Tuesday that it had reached an agreement with Apple regarding a series of patent disputes filed by each company over the past few years. Based on recent settlements tied to similar cases in the industry, Korschelt estimates that Apple will give Nokia a $608 million lump-sum payment up front. Following that initial payment, Apple will like pay Nokia a 1% royalty on all iPhones sold each quarter as a licensing fee. At Apple’s current pace — which has increased steadily rapidly since the iPhone first launched — that works out to approximately $138 million each quarter, or more than $550 million annually.
Apple could pay Nokia $600M up front, $550M each year in patent settlement
Updated Dec 19th, 2018 7:18PM EST
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Apple Nokia patent infringement patents Payment payments Royalties settlement
Zach Epstein has been the Executive Editor at BGR for more than 15 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.
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