The last few years have definitely been difficult for Huawei. The company became an involuntary victim of the economic war that the United States launched against China. Fearing that it would soon be the world’s largest economy, Washington took a series of sanctions and actions against China’s most successful technology companies. Accusations were made as an official reason, for which no concrete evidence was ever presented.
Huawei says it will not succumb to any pressure and will continue to strive for leadership. How will this happen? Thanks to innovation.
To understand the company’s strategy, we need to recall its history.
The beginning
Huawei was born in 1987 when the ambitious Ren Zhengfei set up a company to manufacture Chinese telecommunications equipment. Launched with a start-up capital of just $ 5,000, the start-up has managed to attract young professionals. From the very beginning, Zhengfei did not save money on investments in new developments.
Huawei filed its first patent application in China in 1995 and its first patent application in the United States in 1999. In 2008, the World Intellectual Property Organization filed Huawei ranked first in the number of patent applicationsfiled under the Patent Cooperation Treaty (PCT). In 2019, Huawei was ranked No. 2 in Europe and No. 10 in the United States in the number of patents issued. Huawei is also the largest patent holder in China.
A curious fact is that Huawei is one of the few companies in the world that is wholly owned by its employees. According to experts, this fact definitely has an impact and motivates many professionals to give more of themselves, because in practice they work to their advantage. This further stimulates the process of creating innovation.
“Innovation has been at the heart of Huawei’s business since the company’s inception. Huawei’s patent applications worldwide are on par with other industry leaders since the beginning of this century, and Huawei’s success is definitely due to long-term investment in innovation and research and development.“, says Jason Ding, head of intellectual property rights at Huawei.
The White Paper and the innovative approach
To show their achievements visually by Huawei issued White Papertracking the development of the company.
It is understood that by the end of 2020, Huawei holds more than 100,000 active patents in more than 40,000 patent families worldwide.
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Jason Ding says big investment in new technology is key to Huawei’s success
Photo: Huawei
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Despite the enormous difficulties in recent years, Huawei still maintains its leadership position.
Here are some examples of some of the innovations we owe to Huawei
- 5G technology. The company practically creates the fifth generation telecommunication networks. Today, the company provides the highest speed and levels of reliability compared to the competition. Huawei has the largest portfolio of 5G patents in the world. The most economical and green 5G technologies belong to the Chinese company.
- The main cameras with several sensors. The first smartphones with more than one rear camera were made by Huawei. The company is a leader in the world of mobile photography and significantly blurs the gap between a smartphone and a professional DSLR camera.
- The development of Linux. Huawei has long been in the Top 3 of the largest sponsors of Linux. When creating the latest version of the kernel of the operating system – Linux Kernel 5.10, the biggest contribution is made by Huawei. The benefits of the free Linux operating system are huge for ordinary users as well as for science and technology centers.
These are just a few of the things we owe to Huawei that make our lives better.
It is an indisputable fact that 5G technology guarantees the realization of the Fourth Industrial Revolution, in which artificial intelligence and autonomous machines will transform our cities and everyday life.
Except in economics 5G has great application in medicine, allowing remote operations. In addition to autonomous cars and unmanned public transport, 5G will lead to more efficient and smart farming and cleaner industry. The benefits of this are significant and lead to a better quality of life. The optimization of many of our activities will lead to cleaner air, less traffic and more free time. At the heart of all this is 5G.
As a leader in 5G, Huawei believes that their achievements deserve to be fairly assessed. For this reason, the company began charging a fee for intellectual property, saying that behind the innovation are thousands of hours of tireless work. Some companies may have a problem with this, but they may still have to pay if they want to take advantage of technology that someone else has developed.
Huawei continues to be the leading force in the development of 5G, and Apple and Samsung plan to take advantage of Huawei’s licensed patents soon. The US and Korean companies will have access to the best 5G technologies on the market, while the fee for using Huawei’s technology is several times lower than that of competitors from Qualcomm, Ericsson and Nokia.
However, the competition approves of this step. Qualcomm says Huawei’s decision is entirely reasonable, while Ericsson believes it will only boost competition and new innovation, which is ultimately good for everyone.
Jason Ding notes that Huawei estimates that experts will receive between $ 1.2 billion and $ 1.3 billion in patent licensing revenue.
Analysts are unanimous that Huawei’s decision is more than fair – everyone deserves to appreciate his work. It is also good for consumers who will benefit from creating faster and better 5G networks.
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Huawei is a leader in technology for fast transfer of large amounts of information
Photo: iStockbyGettyImages
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“Huawei has the greatest contribution to the creation of 5G technology and follows fair, reasonable and non-discriminatory principles as regards the licensing of patents“, shares Ding.
“We hope that the royalty rate we announced today will increase 5G acceptance by giving 5G contractors a more transparent cost structure that will keep their investment decisions forward.“, adds the head of the intellectual property rights department.
In practice, investors in 5G technology – whether companies building fifth-generation networks or smartphone makers – will know much more clearly what they are paying for and what the price is compared to competing solutions, analysts say.
Huawei says it will regularly announce its new technological and scientific developments so that the public can better understand Huawei’s innovative achievements and practices. This will be part of a broader initiative by the company to be more open and transparent to the public.
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