Nokia, the once undisputed king of the mobile space has informed that it has settled its patent dispute with the Korean counterpart, Samsung, this Monday. However, the investors were left for wanting more after seeing the financial figures and the money that it earned.
As a result of that, nokia’s share have plummeted 10%. nokia’s unit that holds the patents, nokia technologies now has a sales figure of about euro 1.02 billion in 2015. That’s has increased from euro 578 million the previous year. But there is no stopping nokia. After the Samsung’s deal, it has set its sight on the euro 15.6 billion take-over of the network gear manufacturer, Alcatel Lucent.
The Samsung deal is estimated to be worth 800 million for the annualized run rate. Analyst predicted the deal to be around euro 900 million worth. This lead to the disappointment in the investor as well as the dip in the stock prices.
“There have been expectations that Nokia could make more money with their patent portfolio than (rival) Ericsson… This outcome did not support that… Estimates will be revised,” said Nordea analyst Sami Sarkamies, who has a “hold” rating on Nokia.
Now the total earnings from the samsung deal stands at €1.02 billion in 2015 and an additional revenue of €1.3 billion the following three years.
Nokia has been reinvigorating its efforts to stay relevant in the technological world. After the sale of its mobile unit to Microsoft, nokia focused its resources on networking equipment and telecom. the Finnish based company also hopes to earn some pension from the ongoing patent dispute from another Korean tech company, LG.
Stay tuned for more titbits.
