Huawei will charge royalties for 5G patents starting in 2021. How much will it help the company’s performance?

Huawei will start charging 5G patent fees in 2021, which will provide a lot of help to the company's performance: First: all 5G mobile phones will be charged

Huawei charges this time The scope of patent fees is very wide, and all 5G mobile phones will be charged. This means that in addition to Apple mobile phones, Samsung mobile phones, etc. that use Huawei's 5G technology, domestic Xiaomi mobile phones, OPPO mobile phones, Honor mobile phones, and vivo mobile phones will also be charged. Cell phones, etc., all have to be charged. Huawei has more than 3,000 5G patented technologies. Although not all of them are basic patents, if they really have to charge for them all, the cost will be considerable.

After all, Huawei’s mobile phone shipments reached 200 million in 2019, and Samsung’s shipments were even higher than Huawei’s. Therefore, other mobile phone brands’ annual mobile phone shipments are at least They are tens of millions or hundreds of millions. If each unit really has to be charged, it can create very high revenue for Huawei, and this is something that can be earned at home. Like Qualcomm, it can completely rely on patent fees to make money. Get a lot of money. Second: The upper limit of charging for each mobile phone is US$2.5

Although Huawei will charge for each 5G mobile phone, Huawei still has its own bottom line, and it will not charge indiscriminately like Qualcomm. The patent fees charged by Qualcomm are sky-high. At the end of last year, Huawei also paid Qualcomm a settlement of US$1.8 billion, which also related to patents. Although Huawei now charges fees, the fees are still relatively low. The patent fee for a mobile phone will not exceed US$2.5, which is only about 15 yuan when converted into RMB.

Even if a company's annual mobile phone shipments reach 200 million, if calculated simply, it will only need to pay Huawei 3 billion yuan in patent fees. Compared with the US$1.8 billion Huawei gave Qualcomm, there is still a huge difference. And it is impossible for Huawei to calculate such fees. Although Huawei has a lot of patent fees, other companies also have them.

Therefore, when Huawei negotiates with companies like Samsung and Qualcomm, it is likely that they will reach a patent exchange agreement, that is, they can exchange and use each other without paying, or under the premise of paying less. Patented technology, so as to ensure a win-win situation. Therefore, although Huawei can increase revenue by charging 5G patent fees, it will be difficult to rely on patent fees to make money like Qualcomm. Qualcomm's annual patent fee income has reached almost 50% of Qualcomm's total annual revenue, which is quite astonishing, but Huawei certainly cannot achieve this level.