“Though Apple will pay Nokia a one-time sum and ongoing royalties as a result of their new settlement, one analyst believes the timing of the agreement suggests Apple was able to negotiate a favorable outcome,’ Neil Hughes reports for AppleInsider.
“Analyst Shaw Wu with UBS Investment Research believes Apple may have been in a favorable position in negotiations with Nokia because of a ruling in the iPhone maker’s favor made by the U.S. International Trade Commission in March,” Hughes reports. “That early victory may have allowed Apple to reach a better royalty agreement with Nokia than the Cupertino, Calif., company had expected.”
Hughes reports, “[Um] believes Apple’s one-time payment to Nokia probably amounts to several hundred million dollars… The firm has maintained its ‘buy’ rating for AAPL stock, and reiterated a 12-month price target of $510.”
Read more in the full article here.
Jordan Golson reports for MacRumors, “Deutsche Bank analyst Kai Korschelt today estimated that Nokia will be receiving on the order of a 420 million euro ($608 million) lump-sum payment from Apple as part of a patent litigation settlement between the two companies.”
“The estimate, based on previous patent-related settlements in the industry, assumes a 1 percent royalty rate on all iPhones sold through the first quarter — 110 million phones at an average selling price of $550,” Golson reports. “Korschelt also says that Apple would likely send Nokia recurring revenue payments covering future iPhone sales at the same rate, payments that would come in at around 95 million euros ($137.6 million) per quarter based on current sales, to cover ongoing licensing.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
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