The companies did not provide financial details of the agreement, saying it includes a cross licence to each company's cellular standard patents.
The Chinese smartphone manufacturer Xiaomi launched its new chipset called the Surge S1 earlier this year. The companies have agreed to explore opportunities for further cooperation in areas such as Internet of Things (IoT), augmented and virtual reality and artificial intelligence (AI).
With all that being said, this is indeed a huge step in the right direction for Xiaomi.
China central bank to skip open market operations for ninth straight day
"Major state-owned banks were selling dollars in morning trade", said a trader at a Chinese bank in Shanghai. The offshore yuan was trading 0.01 per cent firmer than the onshore spot at 6.7946 per USA dollar.
It's worth mentioning that the deal between HMD Global and Xiaomi is separate from the Nokia and Xiaomi partnership. "Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our Mi fans worldwide". Under the new business agreement, Xiaomi also acquired patent assets from Nokia. The value of these deals is often not made public, but it is not negligible: documents once revealed that licensing deals between Samsung and Microsoft are worth $1 billion a year.
"Xiaomi is one of the world's leading smartphone manufacturers and we are delighted to have reached an agreement with them". "In addition to welcoming such a prominent global technology company to our family of patent licensees, we look forward to working together on a wide range of strategic projects". Xiaomi claims that there are now over 8 million daily active connected devices on the Mi Ecosystem platform.
For now, both the companies will collaboratively work on IP Routing based on Nokia's newly announced FP4 network processor, optical transport solutions for data center interconnect and a data center fabric solution.