The deal also means Nokia will get a greater royalty from Apple over the use of its mobile patents. This certainly helps Nokia in offsetting the impact of reduced demand for its mobile network hardware.
Although legal disputes such as those between Apple and Nokia are normal in the industry, this can continue for many years. Therefore, analysts do not expect this dispute to be completed sooner.
Referring to the agreement announced in a joint statement by the two companies, as quoted by Reuters, Nokia will supply network infrastructure products to Apple, and Apple will continue selling Nokia digital healthcare products in their retail and online stores, as well as explore further collaboration in the field health.
To note, digital health is one of the areas targeted by Nokia while trying to grow new business to offset the decline in demand for the overall network equipment industry.
Last year, Nokia acquired France Withings S.A., a small company with products like activity trackers and baby monitors built on a digital platform.
"There may be a big future value from this because Apple can be an important distribution channel," said Handelsbanken analyst Daniel Djurberg.