Nokia Stock Prediction: Nokia Can Use The Patent Licensing Fees From Apple To Promote Nokia-Branded Android Phones

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First.


NOK Stock Prediction


  • Nokia’s stock price has risen +22% since my last Buy recommendation for it last March.
  • I am still reiterating NOK as a buy. I like Nokia’s grand plan to be a leader in the $65 billion digital healthcare services industry.
  • The new multi-year patent licensing deal with Apple has long term benefits. Nokia can use the licensing/royalty fees to finance its expansion as a health monitoring gadgets/services provider.
  • Nokia could also use the licensing money from Apple to help advertise HMD Global’s Nokia-branded Android phones.
  • NOK has positive short and long-term algorithmic forecasts scores from I Know First. Now is the right time to go long on NOK.

My last buy recommendation for Nokia (NOK) was last March. The stock has shot up in price by 22%, but I’m still endorsing it again as a buy. I discussed at Seeking Alpha the several long-term benefits of Apple capitulating and becoming friends again with Nokia. Apple and Apple have settled their patent-related courtroom warfare and are now business partners.

Having Apple as a happy and cooperative ally could boost NOK’s stock to $7.50 level. Apple acceding and signing a new patent licensing deal reaffirmed Nokia’s unquestionable gold mine of 40,000 patents. The licensing money from Apple could help Nokia defend against BlackBerry’s (BBRY) new patent infringement suit.

(Source: Google Finance)

After all the courtroom drama, Nokia made Apple sign a multi-year patent licensing deal in an out-of-court settlement. Nokia got paid some upfront money and it will receive a royalty fee for every new iPhone/iPad that is shipped out. I guesstimate that Nokia can earn an 8-figure royalty check after the upcoming iPhone 8 sells 100 million or more units on its first year of release.

Nokia Has A Grand Plan To Become Digital Health Service Provider

Apple also agreed to sell Nokia-branded smartwatches (and other health-related products) on its online shop and retail stores. Apple has almost 500 retail stores in the world. They are good distribution channels for Nokia-branded medical-grade devices. The affluent customers of Apple stores are ideal buyers of the Nokia-branded, Withings-made, health-tracking Hair Coach hair brush.


(Source: Nokia)

Nokia bought Withings last year as a platform to build upon its cloud-based health monitoring services and devices. Withings CEO and Co-Founder Cedric Hutchings was made head of Nokia’s new Digital Health Business unit. Nokia definitely has big plans to become a leader in the $65 billion digital health services industry. Mobile health or mHealth covers fitness-trackers like the Hair Coach and Nokia Steel smart watch.


Nokia-Branded Phones From HMD Global Also Needs Assistance

Nokia gets a royalty fee from every Nokia phone that HMD Global and Foxconn ships out. Therefore, Nokia should also spend part of the licensing fees from Apple to help promote/market Nokia-branded Android phones. Nokia cannot just be a passive bystander when it comes to HMD Global’s Android phones.

The more phones that HMD Global sells, the more royalty fees that Nokia will receive. The more Nokia Android phones there are, the greater the brand awareness is. Nokia-branded smartwatch, smartbands, and smart weighing scales can benefit from the buzz of Nokia-branded Android phones from HMD Global.

A health-tracking smartwatch or a smartband still needs to connect to a smartphone to transfer data. Nokia therefore needs to prop up HMD Global’s phone business. Without substantial help in marketing from Nokia, HMD Global will have a hard time selling Nokia-branded phones.

So, if HMD Global fail to sell a decent number of Nokia-branded Android phones, the Nokia trademark could never be used effectively to sell consumer-centric products like the digital health-tracking Hair Coach.


Apple’s help is not enough to create a global wide customers for Nokia-branded digital health devices. Nokia has to pour time and resources to build up its own brand. It cannot rely on Apple since that company also has plans of its own regarding health-tracking devices.

The machine learning computers of I Know First also endorses NOK as a buy. Nokia’s stock has positive short-term and long-term algorithmic forecasts.

An analysis of monthly technical indicators also agrees with the bullish Nokia forecasts of I Know First.

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

Past I Know First Success With NOK

I Know First has been maintaining its bullish forecast of Nokia, such as its bullish article published on January 27, 2016. Apple and Nokia signed a new patent licensing deal. This will definitely help Nokia compete with rivals like BlackBerry. The recent acquisition of the IoT firm Withings will also be a growth factor for Nokia in the future. Since the forecast’s release on January 27, 2016, Nokia’s stock has increased by 36.33%.

This bullish forecast for NOK was sent to I Know First subscribers on January 27, 2017. To subscribe today click here.