Apple Will Pay Nokia Billions In iPhone Patent Licensing

Although Apple mocked at the financial impact of the settlement, licensing fees of Nokia technologies will end up costing Apple billions.

The Cupertino, Calif. company could pay Nokia a lump sum of up to $608 million with about $138 million in licensing fees going to the Finnish firm every three months, as per Deutsche Bank analyst Kai Korschelt. The analyst reached those figures on the assumption Apple’s pays the going royalty rate of 1 percent on all iPhones sold through the first quarter – 110 million handsets with an average price tag of $550. Per quarter, ongoing licensing fees could be $138 million (95 million euros), the Deutsche Bank expert further says.

Apple, on Tuesday, declared that it was settling with Nokia, telling investors it was glad to get the long-running lawsuit behind it.