Revenues rose 109.0% YoY
Net sales in the Nokia Technologies segment rose 109.0% YoY (year-over-year), driven by Nokia’s (NOK) expanded licensing agreement with Samsung (SSNLF). In July 2016, Europe-based (EFA) Nokia and Korea’s (EWY) Samsung agreed to expand their patent cross license agreement.
Nokia said that annualized net sales related to patent and brand licensing are expected to grow at a run rate of approximately 950 million euros by the end of 2016. The company expects that to positively impact sales from 3Q16.
Nokia’s CEO (chief executive officer) Rajeev Suri stated, “Nokia Technologies continues to drive sales and marketing investments in its digital health and digital media businesses to deepen our market footprint in these growth areas. During the quarter, our OZO Virtual Reality camera for professionals was launched in China, a promising market for VR adding to the camera’s availability in the U.S. and Europe.”
Nokia announced Withings Steel HR in 3Q16
In 2Q16, Nokia closed the acquisition of Withings, a leader in the connected health revolution business. Withings has been a pioneer in that market since the company launched its first product in 2009. The deal gives Nokia an early position in the market and an opportunity to build future licensing income.
The acquisition was initially valued at $195.0 million, or 170 million euros. Withings accounts for almost 4.0% of the smartwatch market, according to Statista. The company’s products are carried by popular retailers such as Best Buy (BBY).
In 3Q16, Nokia introduced the Steel HR, a Withings connected health watch that has several features, including activity tracking, smartphone notification, and heart rate monitoring.