While Huawei remains shut out of the US smartphone industry, the company is seeking to bring in revenue through new methods. On Tuesday, Huawei announced its intention to begin charging companies like Samsung and Apple royalties for access and use of its 5G-related patents.
Huawei called the upcoming fees "reasonable," pledging to negotiate with both Samsung and Apple while capping per phone royalties at $2.50, a lower rate than competitors like Qualcomm and Nokia. According to Bloomberg, the company expects to bring in between $1.2 and 1.3 billion in total fees from 2019 to 2021, though not exclusively for its 5G patents.
The firm is also collecting from companies outside the smartphone world, including smart car manufacturers. As the owner of the world's largest collection of 5G patents, it was only a matter of time before Huawei began leveraging them for additional revenue.
The move comes days after Huawei was named among the five Chinese telecom companies labeled a "threat to national security" by acting FCC Chairwoman Jessica Rosenworcel, as reported by Reuters. Huawei has been on the US's Entity List since 2019.