U.S.-traded shares of Nokia Corp. rose more than 3 percent Tuesday.
THE SPARK: Apple Inc. agreed to pay the mobile phone maker a one-time sum, which was not disclosed, to settle a long-standing patent disputes.
Apple also will pay royalties for current licenses to settle its disputes with the Finnish handset maker. The disputes concerned patents for features such as how touch screens respond to swiping gestures and the built-in "app store" for updated programs.
THE BIG PICTURE: Analysts saw the settlement as an important win for Nokia, which has been struggling even as it maintains its post as the world's No. 1 handset maker. Nokia warned last month that its second-quarter sales and margins will be much lower than expected as it faces challenges in both smart phones and other devices.
In addition to Apple's iPhone, Nokia is also competing with Research in Motion's Blackberry and phones running Google's Android operating system.
Citi Investment Research analyst Zahid Hussein said Nokia currently does not address the high-end market, and won't have a "compelling" product until the release of its Windows Phone in the fourth quarter at the earliest. Nokia said in February that it will use Microsoft Corp.'s Windows Phone software as the main platform for its smartphones, abandoning its own, open-source Symbian platform.
SHARE ACTION: The company's American Depositary shares rose 20 cents, or 3.3 percent, to $6.31 in afternoon trading.
Apple's shares advanced along with the broader market, adding $5.84, or 1.8 percent, to $332.44.