Apple is making attempts to buy Nokia. This claim created a big surprise in the technology world. So, what lies behind Apple's interest in Nokia? Here are the details of the news.
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Apple bought Nokia's smartphone division for 5.44 billion Euros in 2013. This acquisition enabled Microsoft to gain a stronger position in the mobile market and focus on Nokia's Windows Phone operating system.
However, this move did not bring the success Microsoft expected. Microsoft divested Nokia's phone division in 2015 with a loss of $7.6 billion. Nokia, on the other hand, agreed with HMD Global in 2016 and started producing phones with Android operating system.
So why would Apple want to buy Nokia?
The answer to this question may be hidden in Nokia's patent portfolio. Nokia owns thousands of patents in the field of mobile technology and earns an annual revenue of approximately 1.5 billion dollars from these patents. Apple, on the other hand, is forced to licence Nokia's patents to avoid facing its competitors in patent wars.
This increases Apple's costs and reduces its competitiveness. For this reason, Apple may want to buy Nokia's patents directly, both to get rid of licence fees and to gain an advantage over its competitors.
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