Qualcomm shook hands with Huawei and made a settlement of 1.8 billion US dollars! The US threatens Brazil to reject Huawei, the Ministry of Foreign Affairs:Acts of hegemony
Unexpected! At a time when Sino-US relations are tense, Qualcomm and Huawei have reached a settlement!
At the regular press conference of the Ministry of Foreign Affairs on July 30, the spokesperson of the Ministry of Foreign Affairs Wang Wenbin responded to the US threat to Brazil to reject Huawei. He said that some U.S. politicians are pointing fingers at other countries’ 5G network construction cooperation and openly coercing other countries to obey the will of the United States. This is a naked hegemonic act. He hopes that countries will resolutely resist the global technology industry cooperation as they resolutely resist racial discrimination. Discrimination.
Unexpected! Qualcomm and Huawei reached a settlement
In the early morning of July 30th, Beijing time, Qualcomm announced its third-quarter financial report. In the financial report, Qualcomm announced that it has reached a long-term patent agreement with Huawei and will receive a settlement of up to US$1.8 billion in September this year. This settlement is the latest development of the patent disputes between the two parties for many years. It is a back payment and Huawei will pay it in full. As soon as the news came out, Qualcomm shares rose 13%after the market.
Qualcomm CEO Steve Mollenkopf said that this transaction will promote substantial sales growth in the future, but he declined to disclose specific figures. Due to the pressure of the new crown epidemic on smartphone sales, Qualcomm’s sales in the third quarter were reduced by nearly half compared to the same period last year to US$4.89 billion; profits fell by 60%year-on-year to US$845 million.
Qualcomm predicts that with the support of Huawei, the company’s sales this quarter will reach between 7.3 billion and 8.1 billion US dollars. The company said that due to the new crown epidemic and the delayed launch of 5G flagship phones, smartphone shipments are expected to fall by 15%year-on-year. According to people familiar with the matter, Apple Inc. has postponed its first 5G phone to be launched later this year.
It is understood that by virtue of its technological monopoly in the 2G, 3G, and 4G eras, Qualcomm has become a veritable”patent giant” in the communications industry in recent years, and has been joked by the industry as”receiving money on patents.” . And Huawei has been Qualcomm’s largest patent authorization object for a long time, accounting for up to 10%of its revenue and patent expenses. Data shows that as of June 2019, Huawei has to pay Qualcomm US$150 million (approximately RMB 1 billion) in patent fees every quarter.
Someone may ask that Huawei has a lot of patents. Up to now, Huawei has 85,000 valid patents around the world, of which 90%is developed. It can be said that Huawei has become the communications industry. Why use Qualcomm’s patents for the new generation of”patent giants”?
Some people in the industry have given an explanation. On the one hand, although Huawei has a lot of patents, since Qualcomm’s business rarely involves equipment production, not many Huawei patents are used. After authorization” (the patent usage fees of the two companies offset each other), Qualcomm has to pay even less to Huawei. On the other hand, although Huawei has many patents, Qualcomm’s patents are more core. This is one of the reasons why the industry has made Qualcomm a”patent giant”.
It is reported that Qualcomm’s main business is divided into two parts, one part is chip production, the other part is charging patented technology license fees, many of which are included in cellular communication standards, and almost all mobile phones Are in use. However, in recent years, as some customers argued that Qualcomm used its chip supplier’s advantages to charge unfair patent fees, the practice surrounding its licensing rights has been increasingly controversial. Qualcomm is fighting an antitrust lawsuit filed by the US Federal Trade Commission (FTC) over its practices.
Last year, Apple settled a long-standing licensing dispute with Qualcomm. Qualcomm received at least US$4.5 billion in compensation in a multi-year chip supply agreement.
The US threatened Brazil to reject Huawei, and the Ministry of Foreign Affairs responded:Naked hegemony!
At the regular press conference of the Ministry of Foreign Affairs on July 30, the spokesperson of the Ministry of Foreign Affairs Wang Wenbin responded to the US threat to Brazil to reject Huawei.
A reporter asked:The US ambassador to Brazil warned that if Brazil chooses Huawei equipment in its 5G network construction, it will bear the consequences. What is China’s comment?
Wang Wenbin responded that recently, some American politicians such as the Secretary of State Pompeo have repeatedly put pressure on other countries. These countries are required to exclude Huawei. The accusations made by some American politicians such as Pompeo against Chinese companies are completely groundless.
Wang Wenbin said that the United States accused Huawei of threatening US national security, but facts have proved that in the past 30 years, Huawei has built more than 1,500 networks in more than 170 countries and regions around the world, making it for 228 Fortune 500 companies. Companies have provided services, serving more than 3 billion people around the world. There has not been a cybersecurity incident similar to the”Snowden Incident” and”WikiLeaks”, nor has there been a similar incident such as”Prism Gate”,”Formula Organization”, and”WikiLeaks”. No country can show evidence of the existence of a”backdoor” in Huawei products for the network monitoring and surveillance behavior of the”echelon system”.
“The U.S. also claims to maintain democracy and freedom, but what everyone sees is that some U.S. politicians such as Pompeo have repeatedly put pressure on other countries, pointing fingers at other countries’ cooperation in 5G network construction, and openly coercing other countries to obey. The will of the United States, this is a naked hegemonic act.” Wang Wenbin said.
Wang Wenbin said that the U.S. keeps saying that fairness and reciprocity should be practiced, but the facts show that when companies in other countries gain a leading edge, U.S. politicians will fabricate excuses and use national power to suppress unscrupulously, even at the expense of the United States. The market economy and fair competition principles that have always been advertised violate international trade rules and even harm the interests of American consumers and businesses.
Wang Wenbin emphasized that, in the final analysis, the reason why the U.S. suppresses relevant Chinese companies in all manners is neither for national security, nor for democracy, freedom, fairness, and equality. The real reason is that they are Chinese companies, and Is the leader in its industry. Pompeo also claimed that excluding Huawei is equivalent to joining the ranks of the so-called”clean country.” What he called”clean country” is actually synonymous with”double standards.”
“We hope that all countries are committed to maintaining a fair, just, open, and non-discriminatory business environment, and will resolutely resist national discrimination in the global science and technology industry cooperation as they resolutely resist racial discrimination.”Wang Wenbin said.