Chinese technology giant Huawei has had a rough run with the US government. With its technology under heavy scrutiny in the US and the sanctions, the company has plans to make up for some of its losses by charging big smartphone companies like Apple and Samsung for using its 5G-related patents, claims a report by CNBC.
Big smartphone companies like Apple and Samsung rely upon 5G modems from Qualcomm but Huawei has the maximum number of 5G-related patents in the world. The report has cited GreyB, an intellectual property research company, which claims that Huawei has the highest number of “declared 5G patent families of any company, at 3,007, and that 18.3% of those are in use.” Next in the list of the most number of patents are Samsung, LG Electronics, Nokia, Ericsson and Qualcomm.
According to the report, Huawei may charge Apple and Samsung $2.50 per smartphone sold. The Chinese smartphone maker plans to keep its licensing rates lower than that of competitors like Qualcomm or Nokia. This way, it could fetch Huawei $1.2-$1.3 billion from 2019-21, though these are rough estimates and the actual figure may go higher.
5G is the future and despite launching 5G phones, the smartphone giants may have to depend upon companies like Qualcomm and Huawei for 5G modems that could give faster connectivity. Apple may come up with its own 5G modems to reduce its dependability on Qualcomm. The Cupertino-based tech giant, with its M1 chip for MacBooks, has shown that it could do without the Intel chips in the past. For the nonce, Huawei’s patents may start a new revenue stream for the company.