Huawei has come up with a new way to make money on smartphones

Huawei will charge other smartphone manufacturers for access to its patents. Bloomberg reports.

The company announced that it is going to receive royalties for the use of patents for 5G technology on its website on Tuesday, March 16. The report says that Huawei will collect “reasonable” fees from IT giants like Apple and Samsung. The fees will apply to each phone sold based on the intellectual property of a Chinese corporation. Bloomberg analysts have noticed that the corporation has come up with a new way to earn and expand its influence in the emerging 5G market.

Huawei’s General Counsel Song Liuping has promised a lower rate for 5G device manufacturers than competitors Qualcomm, Ericsson and Nokia are offering. In turn, the head of the intellectual property department of Huawei, Jason Ding, stressed that the fee for each phone will not exceed $ 2.5. The amount of deductions from other products – for example, devices of the “Internet of Things” (Internet of Things, IoT) – will be discussed additionally.

The corporation’s statement also clarifies that in this way the company intends to maintain profit against the background of being on the US sanctions list. According to Huawei analysts, in the period from 2019 to 2021, the corporation intends to receive from 1.2 to 1.3 billion dollars in the form of patent and license fees.

Earlier, analysts from Finbold said that Huawei ranked first in the world for active devices supporting the fifth generation communication standard. The corporation’s share was 26.9 percent. Samsung is in second place with a 25.1 percent share, while Apple is in third with a 19.5 percent share.

/Media reports.