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Apple payments to Nokia estimated at $137.6M per quarter

updated 03:40 pm EDT, Tue June 14, 2011

Lump sum could be worth $608 million

A Deutsche Bank analyst, Kai Korschelt, has devised a more precise estimate of how much a new patent deal with Nokia may cost Apple. Korschelt's numbers assume a 1 percent royalty on all iPhones sold through the first quarter, which is in excess of 110 million units; they also assume an average selling price of $550. With that considered, Apple's initial lump-sum payment could be worth 420 million, or about $608 million US.

Continuing to pay royalties, Apple could end up spending 95 million on a quarterly basis, equivalent to about $137.6 million. The amount would of course go higher or lower based on sales, and Apple has been on a steady upward trend with the iPhone. Apple may therefore end up paying Nokia over $1 billion by the end of 2011. If sales somehow remained flat in 2012, Apple would still end up paying $550.4 million that year.

In the short term Nokia is expected to use the money to help boost its flagging cellphone business. While the Finnish firm is still a world leader in some areas, it has taken a beating when it comes to smartphones, largely as a result of the iPhone and devices based on Google's Android platform. It is in the middle of transitioning from the Symbian platform to Windows Phone, and may have difficulty regaining ground.

by MacNN Staff



    Comment buried. Show
  1. facebook_Clarence

    Via Facebook

    Joined: Jun 2011


    Average selling price

    If the average selling price of an iPhone is $550, it's nice to know how much revenue I've redirected from Apple by talking would-be iPhone upgraders out of getting another lockdown phone and buying a Droid instead.

    They've all thanked me for it too. 12 people and counting.

    The little green robot army is just getting started. Apple's days are numbered.

  1. wrenchy

    Joined: Dec 1969


    12? Nice going!

    Bravo Clarence. Bravo!

    Myself, I've directed about 6 to the Green Robot.
    Looks like I've got some catching up to do...


    - Sent from my Android Device.

  1. elroth

    Joined: Dec 1969



    Congratulations, wrenchy and Clarence - now when the next wave of malware in Droid applicatoins hits (it's actually already there, you just haven't noticed it stealing your info yet), there will only be 18 people angry with you. For your sake, I hope none of them are family members or ex-military.

  1. testudo

    Joined: Dec 1969


    Re: yeah

    Yeah, the same old FUD about all that malware out on the droid. Who cares if it affects a few people, or that it's the user's fault for letting an app have access it shouldn't. Yeah.

    Oh, right, FUD only spreads when it is about Apple.

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