The year 2020 will be critical for the application of 5G technology and certain manufacturers will definitely climb up the ladder because of this technology. Qualcomm is currently at the hub of 5G tech development and the American company believes that 5G tech will give Chinese OEMs a real take-off. In an interview with Financial Times, Qualcomm CEO, Steve Morenkov, said that 5G networks will allow Huawei, Xiaomi, OPPO, and vivo to truly take off. These manufacturers have rich experience and will be able to provide 5G for the entire world. He believes that this technology will allow Chinese manufacturers reshuffle their pattern and surpass Samsung and Apple.
Qualcomm annual report shows that about two-thirds of Qualcomm’s revenue last year came from chip customers and patent-authorized customers in China. In fiscal 2015, the ratio was 53%. In January of this year, Qualcomm reached a 5G cooperation agreement with Xiaomi, Lenovo, OPP, and vivo. As one of the consequences of the costly legal battle with Apple, Qualcomm’s reliance on the Chinese market has continued to increase. Apple has suspended the payment of royalties to Qualcomm until the dispute between the two companies is resolved.