Huawei will start charging Apple and Samsung royalties for 5G
Huawei Technologies Co. will start charging mobile giants like Apple Inc. a "reasonable" fee for access to its 5G wireless patents.
The owner of the world's largest portfolio of patents in the field will negotiate bids and possible cross-licensing with the iPhone manufacturer, as well as with Samsung Electronics Co.
Huawei seeks to make money on its technologies, especially in the face of US sanctions. At the same time, the tech giant, however, promises that its rates will be lower than those of competitors such as Qualcomm Inc., Ericsson AB and Nokia Oyj.
Between 2019 and 2021, Huawei is expected to receive between $1.2 billion and $ 1.3 billion in patent and license fees, company executives said. According to Jason Ding, head of Huawei's intellectual property department, the bid for one smartphone with 5G will not exceed $2.5.
According to Ding, Huawei will flexibly negotiate prices for various 5G products-from water meters to robomobiles.
Qualcomm and Apple have previously argued over the fairness of paying $7.5 per iPhone for the manufacturer's technology.
Huawei intends to invest the patent fees back into research in order to maintain its position in the field of wireless networks compared to Ericsson and Nokia.
Earlier this year, the administration of former US President Donald Trump notified Huawei suppliers, including chipmaker Intel, that it was revoking some sales licenses to the Chinese company. However, licenses in the development of 5G technologies are usually issued on a reciprocal basis. Thus, their cancellation may mean that Intel and other companies will not be able to produce 5G equipment, as the courts will protect Huawei's patents.