Huawei is in a new legal dispute with those from Samsung, the Chinese asking the Koreans to pay them a huge amount of money for the phones they sell globally every year. We are talking about an amount that is based on technologies that Huawei would have developed, and those from Samsung use them, and for which they should pay a licensing fee, the Chinese having a very large number "in their head", but it is hard to say if it will be paid.
Huawei demands from Samsung 1.5% of the revenues generated by the sale of smartphones globally for the use of its patented technologies, a very large amount for Koreans. In Q2 2018 Samsung generated revenues of 25 billion dollars from the sale of smartphones, and this would mean that Huawei should receive somewhere between 200 and 375 million dollars in just one fiscal quarter from the Korean company .
Huawei: HUGE AMOUNT Asked for SAMSUNG Phones
Basically, Huawei demands annually from Samsung between 1 and 1.5 billion dollars for the technologies that are used in Korean phones, a huge amount, which those from Samsung would not really want to pay. Q2 2018 was a very bad fiscal quarter for Koreans, with receipts usually being close to $30 billion in the smartphone segment, so Huawei wants to get very high revenues just thanks to the success of Samsung phones.
"In August 2011, Huawei approached Samsung seeking a cross-license to the parties' respective 3G and 4G SEP portfolios. […] By that time, Huawei had announced to the industry that it would demand a 'standard' one-way royalty of 1.5% of the sale price of devices like smartphones and tablets for its LTE/4G SEPs. […] The industry consensus, however, was that the aggregate royalty burden for all such SEPs should be a single-digit percentage, approximately 6-8%. […] Huawei's demand thus amounted to 18-25% of the aggregate rate for all SEPs owned by every firm."
Huawei filed a complaint in the US against Samsung in a federal court, and this is to be judged to see to what extent the Chinese are right or not. If Huawei wins, then Samsung will have a very big problem, and it will have to pay a lot of money to be able to use Huawei's technologies, its profit will decrease significantly, if the prices of the phones will not increase to cover the licenses.
