- Huawei is one of the world’s largest brands selling smartphones.
- The company plans to negotiate cross-licensing rates for its 5G patents with Apple and Samsung.
- Huawei to charge lower licensing fees.
Huawei a Chinese multinational technology company headquartered in Shenzhen, Guangdong. It designs, develops, and sells telecommunications equipment and consumer electronics. Huawei has deployed its products and services in more than 170 countries. It overtook Ericsson in 2012 as the largest telecommunications equipment manufacturer in the world and overtook Apple in 2018.
This was primarily due to a drop in Samsung’s global sales in the second quarter of 2020. As it is the second-largest manufacturer of smartphones in the world, behind Samsung Electronics. In July 2020, Huawei surpassed Samsung and Apple to become the top smartphone brand (in the number of phones shipped) in the world for the first time.
Huawei to charge Samsung and Apple for its 5G patents.
While the US trade ban has suppressed Huawei’s presence in the smartphone market. Its leading research and innovation in the telecom space still hold the helm for the company. Huawei is widely known as one of the world’s largest brands selling smartphones and other consumer electronics. Comparatively, fewer people know of Huawei as China’s richest technology company and the world’s largest manufacturer of telecom equipment.
Huawei will start licensing its 5G technology to other brands including Apple and Samsung. The disputes over what components of basic 5G technology can companies like Huawei or Qualcomm control as it becomes more and more standard. The global revenue from the sale of 5G-enabled devices is predicted to grow from just $5.5 billion in 2020 to $668 billion in 2026, as per Allied Market Research.
Huawei to charge lower licensing rates for its 5G Patents.
Huawei’s Chief Legal Officer Song Liuping announces that the company plans to negotiate cross-licensing rates for its 5G patents with Apple and Samsung. The Chinese giant aims to garner payment between $1.2 billion to $1.3 billion in the form of licensing fees between 2019 and 2021. As per the executive who did not clarify the share of 5G patents in this revenue.
Meanwhile, Huawei has also promised to charge lower licensing fees than its competitors in the telecom equipment space. This includes Nokia, Qualcomm, and Ericsson. Jason Ding, who leads the intellectual property department at Huawei.
A company intends to cap royalties to $2.50 per smartphone. It is only a small percentage of the $7.50 rate that Qualcomm currently charges Apple with. In addition to smartphones, these patents will also be leveraged for connected devices and future innovations. It includes smart homes, autonomous cars, and other robotic equipment used in industries as well as healthcare. Huawei’s executives stressed the US Sanctions enforced by the Trump administration in May 2019.
