Huawei to start charging Apple for 5G patent use

5g Iphone
5g Iphone (Image credit: Apple)

What you need to know

  • Huawei is to begin charging Apple and others for use of its 5G patents.
  • The "reasonable" fees proposed could generate billions in revenue for Huawei.
  • Royalties will be capped at $2.50 per iPhone, which could still be an awful lot of money.

A new report says that Huawei will charge charging Apple and others for use of 5G patents that power the iPhone 12 and beyond.

From Bloomberg:

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.The owner of the world's largest portfolio of 5G patents will negotiate rates and potential cross-licensing with the iPhone maker and Samsung Electronics Co., Chief Legal Officer Song Liuping said. It aims to get paid despite U.S. efforts to block its network gear and shut it out of the supply chain but promised to charge lower rates than rivals like Qualcomm Inc., Ericsson AB and Nokia Oyj.

The report says Huawei will cap its fees at $2.50 per phone, which could still make for millions or even billions in revenue. Apple introduced 5G to the iPhone 12 last year, one of several upgrades which make it one of the best iPhones in recent memory. The global 5G network remains in its infancy, and a recent Deutsche Bank note claims that growth of 5G infrastructure will accelerate the iPhone upgrade cycle going forward.

The iPhone 13 is expected to feature Qualcomm's Snapdragon X60 modem, which will enable both mmWave and sub-6Hz 5g usage, even simultaneously. It would mean that mmWave might no longer be restricted to the U.S. and that the iPhone would be able to switch between bandwidths to either save battery life or maximize data speed.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9