Nokia (NOK 6.21, +0.06) has added 1.0% after signing a multi-year patent deal with Chinese smartphone maker Xiaomi.
Xiaomi acquired certain patent assets from Nokia and the agreement includes a cross license to each company's cellular standard essential patents. Furthermore, the collaboration announced today also involves plans for both companies to work on optical transport solutions for datacenters, IP routing, and a data center fabric solution. The two companies also agreed to work on opportunities in areas like Internet of Things, augmented & virtual reality, and artificial intelligence.
Xiaomi has a presence in 30 countries and the company's Mi Ecosystem Internet of Things platform has been deployed on 60 million connected devices with more than 8 million devices active daily.
As for augmented and virtual reality, both areas are in need of content that will showcase the technology's potential to entice more users. HTC, Facebook's Oculus, and Sony released virtual reality headsets last year while Microsoft is still working on the Hololens, which is an augmented reality headset.
Fewer than 1.5 million full featured VR headsets were sold last year while sales of Samsung's Gear VR exceeded 4.5 million. Gear VR is a headset adapter that works with Samsung phones. Unlike other headsets, Gear VR is a low-cost solution that does not require the user to connect the headset to a computer with a powerful video card.
Last year's batch of VR headsets was met with a generally positive reception, but the high cost of adoption and the limited content offerings have weighed on demand. With Nokia and Xiaomi announcing plans to get into the fray, there is some hope that increased competition among hardware and software developers will lead to more desirable AR and VR products.