Nokia Inks Pioneering 5G Patent Pact With Honor Amid Ongoing Legal Tussles With Other Chinese Companies
Portfolio Pulse from Nabaparna Bhattacharya
Nokia Corporation (NYSE:NOK) has signed a 5G patent cross-license agreement with Chinese smartphone maker Honor. This is Nokia's fourth major smartphone agreement in the past year, although terms were not disclosed. Nokia continues legal disputes with other Chinese firms like Oppo and Vivo over 4G and 5G patents. Licensing revenue from patents was 39% of Nokia's operating profit in 2022. The company has stated it will not meet its 2023 sales outlook, with licensing discussions extending into 2024. Nokia's Q4 and full-year 2023 financial results will be announced on January 25, 2024. NOK shares saw a slight increase of 0.29% to $3.46.
January 05, 2024 | 3:01 pm
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Nokia Corporation has entered into a 5G patent agreement with Honor, indicating a strong patent portfolio and licensing revenue stream. However, ongoing legal disputes and a missed 2023 sales outlook could affect investor sentiment.
The new patent agreement with Honor is positive, showing Nokia's ability to monetize its patent portfolio. However, ongoing legal disputes and the announcement of not meeting the 2023 sales outlook could counteract the positive news, leading to a neutral short-term impact on the stock price.
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IMPORTANCE 75
RELEVANCE 100