Chinese smartphone manufacturing Xiaomi, who is hailed as the "Apple of China," has now partnered with the original cellular powerhouse, Nokia. Both companies have just announced that they have formed a new partnership and signed a patent licensing agreement to share each other's cellular and network knowledge along with equipment and patents.
Making each other stronger
The newly announced Deal basically means that both companies will have access to each other's standard essential patents, particularly with products needed to comply with industry standards.
The multi-year patent deal will see both companies working together on building different communication solutions and technologies for data centers, fabric solutions, and IP Routing. The collaboration will also extend to other fields of technological research and development, including virtual and augmented reality, the Internet of Things, and artificial intelligence.
Nokia and Xiaomi sign business cooperation and patent agreements https://t.co/nxyGluVapU pic.twitter.com/8CLSYVyqgX
— Nokia (@nokia) July 5, 2017
Global expansion
Xiaomi had previously made a name for itself in the smartphone market with the release of quality devices sporting top-end specs that were priced competitively. However, the company has somewhat been losing grown in its own turf due to the rise of other Chinese manufacturers, such as Oppo and Vivo.
Now the company is apparently looking to expand into other markets with multiple deals and partnerships with international corporations.
Expanded portfolio
Aside from smartphones, the company has applied for thousands of patents, with over 4,000 filings approved. Almost half of its patents are overseas. Based on the patents, the company is likely looking to expand its portfolio with Xiaomi-branded television sets, air-conditioners, and other appliances and devices.
The new deal with nokia will likely further expand that portfolio to include high-performance networking products, networking software, and networking services.
Xiaomi's CEO Lei Jun mentioned in a recent statement that their new partnership with Nokia should now allow them to deliver exciting new tech innovations to the world, which it can only achieve by partnering with global technology leaders.
Nokia is, of course, one of the pioneering companies that had set numerous standards within the mobile industry that are still being used today. The company actually continues to receive a lot of revenue from licensing the patents it has accumulated throughout its lifetime. Partnering with them is an essential step for growing tech firms who want to expand globally within the mobile market. Nokia already has existing licensing agreements with large tech firms such as Apple and Samsung.
