Huawei might have been banned from the US. However, it is not stopping the Chinese company from charging license fees for companies like Apple and Samsung. Huawei is known for its wide range of 5G patent portfolios and is now looking to generate revenue.
Huawei Technologies Co. will begin charging mobile giants like Apple Inc. a “reasonable” fee for access to its trove of wireless 5G patents, potentially creating a lucrative revenue source by showcasing its global lead in next-generation networking.
Once successful, Huawei will be able to generate revenue to the tune of $1.2 billion. Furthermore, the company claims to offer cross-licensing at a lesser fee than rivals like Qualcomm and Ericsson. Jason Ding, head of Huawei’s intellectual property, assures that per-phone royalty is capped at $2.50 per phone.
Apple introduced 5G on the latest iPhone 12 series and will have to shell out the licensing fees. The company has already sold a record number of iPhone 12; Huawei could earn 5G fees in hundreds of millions from Apple alone. Perhaps it will help Huawei recover from the dwindling smartphone revenues due to US sanctions.
The 5G licensing is likely to shape up into a bone of contention. In other words, as 5G usage picks up, companies like Huawei, Ericsson, and Nokia will lock horns on who will benefit the most. In the end, regulators will be tasked with deciding the value of standardized technology.
Apple will launch the iPhone 13 in the second half of this year. The latest iPhone is expected to be powered by Qualcomm Snapdragon X60 and offers both mmWave on all regions. As of now, mmWave is restricted to the US. This also means the prices will go up considerably.[via Bloomberg]