Apple Lossless Audio CODEC (ALAC), announced at the beginning of this year the conclusion of a partnership with Nokia to license some technologies of the Finnish company, thus solving the processes between the two companies. Then Apple and Nokia kept silent about the details of the agreement, but today we learn that no less than 1.7 billion euros would have been paid so that Apple could use the technologies developed by the Finns.
Apple has so far made an initial payment of 1.7 billion euros to license Nokia's technologies, and the Finns have included part of this amount in the receipts for the financial results for Q2 2017. Nokia has admitted that it will collect 1.7 billion euros from Apple to allow them to use these technologies in the iPhone and iPad, the agreement between the two companies covering the collaboration for several years
Apple will continue to pay licenses for the technologies used, separately from this initial amount, so in the end those from Nokia will collect even more money from those from Cupertino. How much the final amount could rise to is not known yet, but it is clear that the future activity of the company will be supported very easily from the money that will come from Apple, but other companies also pay licenses, albeit smaller ones.
Apple is forced to pay licenses of this kind because not all the technologies used in the iPhone and iPad were developed by its engineers. Apple also pays licenses to other companies for other technologies, and this explains part of the high selling price of the iPhone worldwide, which is directly influenced by these agreements that Apple makes with various other companies.
"Nokia mentioned that it had increased cash inflow thanks to an "up-front cash payment of approximately EUR 1.7 billion, part of which was recognized in the second quarter 2017 results." We contacted Nokia to confirm if the "up-front cash payment of €1.7 billion ($2 billion) is from Apple."
