This Weak Smartphone Maker Silently Counting Its Apple (AAPL) Cash
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Apple (Nasdaq: AAPL) is expected to sell 10 million iPhone 5s over the weekend. With an average selling price of ~$660 per device this suggests a mind-blowing sales figure of $6.6 billion in just a few days. In addition to Apple, a much-weaker smartphone maker will be entitled to some of that cash for basically doing nothing.
As part of a 2011 patent settlement deal, struggling smartphone maker Nokia (NYSE: NOK) gets paid a licensing fee on every iPhone sold. Estimates range from $6-$15 per device. So, Nokia can expect to make $60-$150 million this weekend.
The good news doesn't stop there. Apple is expected to sell approximately 140 million iPhones in 2012 and 180 million next year. So Nokia could be seeing billions coming its way.
It's clear that Nokia's valuable patents are one of the only things going right for the company. In the second quarter, Nokia received a $400 million licensing pre-payment, likely from Apple, without which would have led to a massive cash burn.
So even though smartphone shoppers are tripping over Nokia's Lumina phone to get their hands on the iPhone 5, Nokia management is still silently pleased watching the mobs at Apple stores Friday.
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As part of a 2011 patent settlement deal, struggling smartphone maker Nokia (NYSE: NOK) gets paid a licensing fee on every iPhone sold. Estimates range from $6-$15 per device. So, Nokia can expect to make $60-$150 million this weekend.
The good news doesn't stop there. Apple is expected to sell approximately 140 million iPhones in 2012 and 180 million next year. So Nokia could be seeing billions coming its way.
It's clear that Nokia's valuable patents are one of the only things going right for the company. In the second quarter, Nokia received a $400 million licensing pre-payment, likely from Apple, without which would have led to a massive cash burn.
So even though smartphone shoppers are tripping over Nokia's Lumina phone to get their hands on the iPhone 5, Nokia management is still silently pleased watching the mobs at Apple stores Friday.
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