Photo: AP, Business Insider
Here’s one way Apple is using its healthy pile of cash.Bernstein analyst Pierre Ferragu estimates Apple is paying Nokia €500 (~$715) million as an upfront payment this quarter to settle its patent dispute.
He estimates Apple will pay Nokia an additional €100 (~$143) million the rest of the year.
Apple will be making quarterly payments to Nokia, which could be as much as €55 (~$79) million per quarter by Q4 2012. Ferragu estimates a 1.1% royalty to Nokia based on Apple’s cost of goods sold, which is how Apple pays Qualcomm.
The payments from Apple will have a material affect on Nokia’s business. Ferragu bumped his EPS estimate for the year by €0.02 to €0.22 for this year.
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