"Nokia and Honor Forge Ahead with 5G Licensing Agreement Amid Patent Tensions in China"
Nokia Corporation has begun 2024 by signing a patent cross-license agreement with Chinese smartphone manufacturer Honor, marking its fourth major deal after similar agreements with Apple, Samsung, and Huawei. Despite these successes, Nokia is likely to miss its 2023 financial targets due to incomplete license renewal negotiations. The company also lost a significant contract with AT&T to Ericsson. However, Nokia continues to invest in 5G technology and holds a strong patent portfolio with around 20,000 families, including over 6,000 essential to 5G. The company's stock has declined in the past year, and it currently holds a Zacks Rank #4 (Sell), with other companies like United States Cellular Corporation, Workday Inc., and Qualcomm Incorporated positioned as stronger picks in the market.