#Apple agreed to pay one-time up-front €1.7 billion to #Nokia for patents *UPDATED*

In today’s financial results, Nokia mentioned that it had increased cash inflow thanks to an “up-front cash payment of approximately EUR 1.7 billion, part of which was recognized in the second quarter 2017 results.” When Nokia announced back in May that it settled all litigation with Apple, they also said that they will update its capital structure optimization program, as one reader pointed out, which means Apple agreed to pay a big one-time amount.

We contacted Nokia to confirm if the “up-front cash payment of €1.7 billion ($2 billion) (of which a part was recognized in Q2 results)” is from Apple, and Nokia’s PR team confirmed that and invited us to join the investor webcast at 2pm CEST here for more details.

We can conclude that Nokia scored a good deal with Apple. Apple agreed to pay up-front 2 billion dollars, of which some were paid in Q2. Apple will continue to pay royalties, along with the rest of this up-front payment. Details about the Nokia-Apple deal can be found here.

Update: Seeking Alpha has a full transcript of the webcast and the Apple part goes:

Second, we got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position. As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings.

  • Hemedans

    Seems like Apple never learn, 2011 they sue Nokia then Nokia sue them back and they had to pay $600m usd.

    This year same thing happen.

    • This time the amount is triple LOL

  • EricLovesSymbian

    EricLovesSymbian says:

    Delicious! Absolutely delicious!

    This is simply wonderful…

    • Very good for you(the shareholder) 😀

      • Michael

        Not good yet (Share price) but patience will be rewarded. Hopefully, LG and others will play ball soon with licensing (Suri definitely played that down). One more upgrade and the company will be out of Junk status. 2018 will realize full cost synergies and some small start to 5g. 2019, according to Suri, we see meaningful 5g deployment spurring others to keep up. I remember when 2017 seemed far away and 2018 is just around the corner.

      • EricLovesSymbian

        EricLovesSymbian says:

        Lol… Actually, here in America, Nokia is @ $6.36 which is less than the price that I bought it for.
        I bought it @ $6.40 (one of the highest it’s been in a while) and ever since, it’s barely surpassed that. So even though I love seeing Nokia stock price rise, as of 7/28/2017, I am still down (meaning I lost money). But it’s okay…

        Nevertheless, I didn’t buy it for now, 2017, I bought for February and or June 2019, when Nokia will be the leader of the upcoming 5G network.

        If / When companies pay Nokia royalties for using its 5G stuff, I’m assuming that the stock price will increase.

        And until then, (if that ever does happen), Nokia pays about 3% dividends here, so every 3 months or so, they should be giving me about $45 I think…

        😉

        But seeing Nokia make money and get money from Apple makes me happier. Apple is too arrogant in many ways.

  • Pingback: After arbitration with #LG, #Nokia boost revenue expectations | Nokiamob()