The mobile device companies Nokia and Xiaomi announced today that the two companies will be working together.
The two renowned companies revealed that business cooperation and patent licensing agreements are being signed. Under this agreement, Nokia and Xiaomi will share “cellular standard-essential patents”. This means Xaiomi will acquire the use of certain assets from Nokia’s long-running mobile phone history. On the other side of things, the two developers will also be working together to deliver high-capacity/low power solutions for data centres and large-scale web providers. This will include the IP routeing that focuses on Nokia’s new network processor. The agreements also allow for potential business opportunities with things like augmented reality, virtual reality and even AI.
Xaomi Inc is a privately owned Chinese electronics company. Located in Beijing, Xiaomi is the currently the world’s fifth largest smartphone developer since 2015. Xiaomi not only designs and develops smartphones but also sells them. Additionally, the company develops mobile apps, laptops and other related consumer electronics. Since Xiaomi’s founding in 2010, the company has gone on to gain market share in mainland China. By 2014, the company became the largest smartphone vendor in all of China after selling over 60 million smartphones. After receiving US$1.1 billion funding from investors, Xiaomi became the world’s fourth most valuable technology start-up company.
After being sold by Microsoft, Nokia is now trying to regain its footing in the mobile market. It was announced earlier this year that Nokia would be launching a new set of low-end and mid-range smartphones. The current owners of Nokia, HMD Global, stated that the company’s goal was to work with Nokia to re-establish the company’s brand with new devices. Partnering up with a major company such as Xiaomi may help to further along this process, expanding Nokia’s reach in the tech industry.