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Huawei is charging a royalty fee for its 5G patent

In previous years, Huawei is considered the best-selling smartphone in the world. Hence, many people like the Huawei models. But in recent years we see that the company lose its position in the market. Well, there are several reasons for this.

Why Huawei lose its position?

As we all know that the Honour is separated by Huawei. Hence, this is one of the reasons. US sanction is also another reason for it. It creates a gap between the android.

Huawei steps in recovering the loss

Well, the company will not afford this loss. From the Bloomberg reports, it was concluded that Huawei will add the loyalty fee to its 5G phones. Like Samsung and Apple, Huawei will implement some reasonable fees to all its 5G patent smartphones.

It is concluded that the company will receive an amount from 1.2 million dollars to 1.3 million dollars time of 2019 to 2021.

Jason Ding statement

Jason Ding the head of the company stated that this action is effective for the company. Hence, a reasonable price will apply to the handset. So, the per-unit royalty cap is dollar 2.5.

On which models the loyalty fee is applied?

The company is applying this loyalty fee on the 5G and all the early generation models. However, people who buy the Apple or Samsung models are giving this amount to the company because this price is included in the sale price.

What is the rate of selling Huawei mobiles?

In 2020 Q4, a huge difference is seen. As compared to other companies like Samsung and Apple the selling rate of Huawei is 32 million smartphones. If we see the whole year, then the selling rate is about 188 million smartphones while the other company has 240 million-selling rate of models.

 

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