Nokia Concludes Seventh Smartphone Patent License Deal, Expects €1.4 Billion Operating Profit in 2024

Nokia has successfully concluded its smartphone patent licence renewal cycle with its seventh deal in 13 months, but the identity of the latest licensee remains a mystery. In an announcement made on February 8, the Finnish company stated that it is unable to disclose the name of the new licensee, only revealing that their licence had expired earlier.

The completion of the smartphone renewals has paved the way for Nokia Technologies, the firm’s licensing business, to expect significant catch-up payments in the first quarter of 2024, exceeding €400 million. This comes on top of the company’s current annual net sales run-rate of approximately €1.3 billion, excluding catch-up net sales.

With the addition of this latest deal, Nokia Technologies is now aiming for a target run-rate of €1.4 to €1.5 billion in the mid-term, focusing on the remaining addressable smartphone market and expanding into areas such as automotive, consumer electronics, the Internet of Things (IoT), and multimedia through patent licensing.

Jenni Lukander, president of Nokia Technologies, expressed her satisfaction with the completion of the smartphone licence renewal cycle, emphasizing the strength of Nokia’s patent portfolio and the industry’s reliance on their technology. She also highlighted the company’s progress in new growth areas and the promising pipeline of future opportunities.

Overall, Nokia Technologies expects to generate at least €1.4 billion of operating profit in 2024, including catch-up net sales, signaling a positive outlook for the firm’s licensing arm in the coming years.