June 03, 2024 – Nokia has recently unveiled its 2023 financial results, highlighting a significant revenue stream generated by its technology division, which oversees the company’s patent portfolio. Despite a slight dip in figures, the division managed to secure approximately 1.3 billion euros (currently equivalent to approximately 10.231 billion yuan) in annual net sales through routine updates to patent agreements with over 50 companies, including Apple, Lenovo, and Samsung.
In a separate development, Nokia’s partnership with HMD Global Oy (HMD) continues to evolve. Since 2016, the two companies have been in a strategic alliance, granting HMD exclusive global rights to produce Nokia-branded smartphones and tablets. Under this agreement, Nokia receives royalties based on sales of these branded devices.
While Nokia has held a 10% stake in HMD since 2020, its financial report for 2023 indicates a recorded impairment loss of 28 million euros (currently equivalent to approximately 220 million yuan) related to its share of income from this partnership.
In a move that potentially heralds changes in the partnership, Nokia and HMD revised their licensing agreement in August 2023, setting an expiry date of March 2026 for HMD’s exclusive right to produce Nokia-branded devices. Moreover, in September 2023, HMD announced its intention to adopt a multi-brand strategy, though it remains unclear whether Nokia will continue to offer consumer-facing devices under its own brand after the expiry of the current agreement in 2026. Nonetheless, HMD has already begun introducing a range of its own branded mobile products.
