We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

Summary: Apple and Nokia have struck a patent deal which could see the Finnish cellphone maker (or Microsoft OEM) getting a whopping £8/$11.50 in revenue for each iPhone Apple sells.

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Apple and Nokia have struck a patent deal which could see the Finnish cellphone maker (or Microsoft OEM) getting a whopping €8/$11.50 in revenue for each iPhone Apple sells.

Nokia CEO Stephen Elop said:

“We are very pleased to have Apple join the growing number of Nokia licensees. This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”

The details of the deal have not been released but rumor has it that Nokia could be pulling in as much as €8/$11.50 for each iPhone Apple sells. In a Twitter conversation patent blogger Florian Mueller called the rumor 'plausible' and said that it was 'consistent with rumors about other deal' and also 'consistent with what's known about Qualcomm's terms (5.5%).'

And Apple sells a LOT of iPhones. This year alone (in the period Jan to Mar ... the only data we have for this year so far) the company has sold over 18.5 million handsets, a figure that could translate into some $200 million in patent royalties.

Not a bad day's work for Nokia.

Topics: Mobility, Hardware, iPhone, Nokia

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18 comments
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  • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

    I am curious to know from when this deal is in effect?
    rdelfgou
    • From July 2007: 110 million phones.

      @rdelfgou

      Plus 3G iPads. Explains, in part, the 130 USD price difference.
      Bruizer
  • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

    "consistent with what?s known about Qualcomm?s terms (5.5%)"

    Are you sure about the Math? 11.5/650 = 1.77%. Even if the rumor is true, looks like Apple has bargained itself an excellent deal! A whole lot better than what Nokia had asked for in the first place!
    browser.
    • No way the rumour is true; just another tabloid nonsense

      @browser: I mean never anyone pays or paid $11.5 per phone for patents, ever. <b>Not even remotely close to that; these kind of payments are minimal.</b>

      And, this is out of court settlement. Apple could drag these trials forever and Nokia would not see any money at all for a long time. Because of this and since their profits in danger, Nokia finally agreed to offer fairly valued fees, not the crazy anticompetitive ones the company demanded initially.

      What happened is what Apple wanted from very beginning.
      DDERSSS
      • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

        @DeRSSS
        No. A settlement means the case is over, as long as both parties adhere to its terms. Apple has other suits with other parties, these, of course, continue. Nokia or Apple could try to sue again, with a different constellation of patents, but the defendant would tell the court "The other party should have mentioned this before: this is a waste of judicial resources." and the - most likely overburdened - court would likely agree.

        Regarding your dismissal of the $11.50 per unit figure, if Nokia (and remember, Nokia sued Apple) had a strong portfolio and Apple couldn't match it or was in a unfavorable venue (Nokia had taken this to a world trade entity and asked that Apple not be allowed to export its phones), then maybe those were the terms Nokia could get, plus Apple may have paid for and received licensing for future products, which would also be worth more than a strict discussion of the iPhone.

        It will be all rumor any way. The settlement will remain confidential. If any evidence of the amount of money paid to Nokia appears, it will be in the companies' financial statements, but as an aggregate value for all licensing costs and revenues, and tallying the cost will require some deductive reasoning.
        DannyO_0x98
  • Okay, so where are all the people who said

    that these companies would sue each other out of existence? chirp...chirp...chirp...

    Anyone with a brain knew that at some point these companies would eventually settle outside of court with a cross licensing or just a straight licensing deal. This will be true of any other remaining litigation that is still pending.
    Snooki_smoosh_smoosh
    • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

      @Snooki_smoosh_smoosh
      ron.duck
  • Corporate greed, workers shafted

    So Apple signs an agreement that will give Nokia an $11 cut right off the top and it is being hailed as a good thing.

    Considering an experienced tech can re-assemble an iphone in less than 15 min, where is the cut for the American worker? At $20/hour, that 15 minutes would add $5 to each phone to assemble them in America.

    I guess $11 is the cost of doing business because you have no choice, but $5 is too much because you can outsource to suicidal Foxxconn workers for half that.
    croberts
    • Atlas moved

      It's not just the hourly wages. It's the taxes, the regulations, the 'going green' at gunpoint... It's just easier to move the whole thing away from guys like you to places where you can't turn everything into Detroit with your votes.
      Robert Hahn
      • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

        @Robert Hahn

        lol.. I hope you're making enough to build a walled castle. If the rest of America turns into Detroit as you put it, your stocks and bonds won't save you.
        croberts
  • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

    Sweet irony, Nokia gets money from each iPhone sold to reinvest into WP7 phones. :)
    LoverockDavidson
    • No

      @LoverockDavidson

      It is to stay afloat longer since Symbian phones are dead and WP7 phones a long shot. Nice dreaming though.
      Economister
  • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

    Not true. Nokia is doomed no matter what.
    james347
  • Who's next

    If the number really is anywhere near $11 per phone, then this was a brilliant competitive stroke by Apple because the guys selling Android phones will be underwater if they have to pay $11 per phone to Nokia. Unlike Apple, they do not have the margin headroom to do that; most of them don't make ten bucks per phone.

    So far Nokia hasn't gone after Android or any of the handset makers, but that's what usually follows one of these settlements. If you get one of the big guys to roll over, the others tend to try to settle as well.

    If Oracle ends up taking another chunk out of Android's hide, the 'free' Android could become waaaay too expensive for HTC, Moto, and the rest. Even Ballmer could sell operating systems in that environment.
    Robert Hahn
    • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

      @Robert Hahn

      A lot of the android makers already have deals with Nokia. Usually this sort of thing gets resolved outside of litigation.
      SlithyTove
  • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

    I wonder how many people - other than DeRSSS - realize that this is actually a win for Apple because now Nokia is getting from Apple what they were charging everyone else rather than the extra high rates Nokia was attempting to charge Apple...
    athynz
    • RE: We're in the money! Nokia rumoured to be getting $11.50 per iPhone sold

      @athynz

      It's called 'negotiations'.....it's a common tactic to demand more than what you really want so that when you 'compromise' later on and get what you really wanted, the other side will consider it a 'win' when it really isn't.

      Apple wanted to pay ZIP...Nokia says 'nope, we want you to pay far more than the standard licensing fee'....so Apple says 'screw that' and Nokia responds 'okay...just the standard fee'.....Apple says 'fine'.....and thinks they won, even though they actually LOST because they were demanding to pay NOTHING.....

      In other words, Apple got played.
      Doctor Demento
      • Apple always expected to pay.

        @Doctor Demento

        Yet more lies? Listen to Apple's conference calls and the have putting money in reserve for 4 years. The question was not if Apple was paying, it was always about how much.

        Nokia is so much hungrier now than 4 years ago, Apple got much better terms.
        Bruizer