Huawei to start demanding 5G royalties from Apple, Samsung2021-03-17 16:09 by Daniela
Tags: Huawei, 5G, Samsung, Apple
Huawei will begin charging smartphone makers a royalty to use its patented 5G technology as the Chinese technology firm looks to open a new revenue stream, even as other parts of its business have taken a hit due to U.S. sanctions.
Given the circumstances, Huawei has been pushed to start charging for the use of those intellectual properties. The rate it will be charging will depend on the handset selling price but it promises that it will be capped at $2.50. Those fees, however, are applied to each and every single smartphone sold. All in all, Huawei is expecting to gain up to $1.3 billion in revenue from patent licensing between 2019 and 2021. That figure, however, doesn't just apply to 5G patents but other Huawei IPs in use as well, including those for 4G, for example.
To put that fee in perspective, it's less than rivals like Nokia and Ericsson currently charge companies to access their 5G tech and significantly less than the $7.50 per device fee that famously led to years of litigation between Apple and Qualcomm.
Samsung and Apple will be Huawei's biggest sources for 5G patent revenue at least in the near term, as they are currently the top two smartphone companies in the world, and both have overhauled their lineups to focus on 5G phones over the past year.
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