Nokia's revealed a much better and more sustainable business plan than selling Android phones for £700 — raking it in in the background by licensing its 5G technology to others.
The mobile innovator is one of a bundle of companies that have contributed knowledge in the form of software and hardware patents to the forthcoming 5G wireless standard, with Nokia revealing that it's to charge a set rate of €3 per device sold to every smartphone manufacturer to use its technology. So that's money for Nokia every time Samsung sells something a bit too big, money for Nokia whenever Apple successfully convinces a user to upgrade because it's been 11 months since they last upgraded, and money for Nokia when someone in the year 2021, after three months of exhaustive research and comparisons, spends £178 on last year's mid-range 5G Huawei.
That's nothing compared with what Qualcomm is set to make from selling rights to use its 5G radio innovations, though, as it's set a percentage level on sales, with future 5G smartphones that sell for more than $400 attracting a top-level 3.25 per cent licensing fee; which could earn Qualcomm as much as $13 (£10) in royalties whenever any 5G-capable device is sold. [Nokia via Venturebeat]