Recently, Huawei’s CEO, Ren Zhengfei, said that Huawei is much more expensive than Nokia/Ericsson because it provides more value. He expects that most countries will use Huawei’s 5G. This is because the company provides better technology and practical value. He believes that Nokia and Ericsson are much more expensive than Huawei. However, Huawei provides more value thus it is expensive and not cheap.
Ren Zhengfei believes that most of the foreign countries will adopt Huawei’s 5G. After more than 20 years of cooperation with us, the customer will not give up on our choice. He predicts that 135 to 136 of the approximately 140 countries will use Huawei’s 5G a year later. “The US and Australia will not use Huawei for sure but we have no problem in Europe”
Ren Zhengfei on Huawei’s Patents & 5G investments
Huawei’s white paper on innovation and intellectual property hit the web last month. The white paper shows that innovation/intellectual property protection is the foundation of Huawei’s success for over 30 years. As of now, Huawei has over 87,805 patents, of which 11,152 are US patents. Since 2015, Huawei has received more than $1.4 billion in intellectual property revenue. In addition to its own patents, Huawei has paid more than $6 billion in patent fees to legally use patents of other companies. Nearly 80% of the fee is paid to US companies.
Huawei’s 5G investments
Huawei invests 10% to 15% of its revenue annually in research and development. Over the past 10 years, it has spent about $73 billion on R&D. In the past year alone, Huawei’s R&D investment reached $15 billion, ranking fifth in the world. By the end of 2018, Huawei has invested more than $2 billion in R&D of 5G, which exceeds the sum of 5G R&D investment of major equipment suppliers in Europe and America. Huawei, Ericsson, and Nokia will certainly compete for 5G contracts globally.