Shares of Nokia, the world's largest mobile phone maker, remained below $6 yesterday and fell a further 1.35 per cent in after-hours trading following the ruling against the Finnish company by a British court over a patent dispute brought forward by IPCom.
Nokia's stock (opens in new tab) is worth $5.86 at the time of writing, valuing the company at around $22.57bn, less than rivals Research in Motion, HTC or Motorola Mobility and making it a potentially attractive acquisition target for a Chinese behemoth like Huawei or ZTE, which may get some inspiration from what Lenovo did to IBM a few years ago.
The company had a roller coaster of a week, having won a battle with Apple earlier this week; this was related to the payment of a one-off fee of around £700 million with an estimated Eur 8 per phone as a levy to cover the Nokia patents that Apple will use in its iPhone smartphones.
More importantly, it shielded Nokia from a number of lawsuits that Apple had initiated against it a few months ago.
Then Nokia lost that patent struggle against IPCom which covered all the 3G-enabled handsets on sale by Nokia in the UK. Although Nokia is planning to appeal against the ruling, it could prove costly as IPCom could impose hefty royalties and licence fees which the firm would have no other choice but to cough up.