That’s a far cry from one estimate that the one-time payment would total “several hundred million euros,” but RIM is also on the hook for annual payments of an unspecified amount for an unspecified number of years.
The annual royalty payment could be substantial. RIM has shipped about 9 million units in the first three quarters of 2012, so a total for the year of 12 million units is a reasonable guess. At a royalty rate of $2 per unit, that’s $24 million that RIM will pay to Nokia. At a royalty rate of $5 a unit, the payment would total $60 million. If the BlackBerry 10 is a huge success, the royalty payment could be even more, but a range of $24 to $60 million is within reason.
RIM’s shares, which had been up as much as 1.7% earlier today are now up about 0.3% at $11.79 in a 52-week range of $6.22 to $17.96.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.