Huawei and Oppo enter into a patent licensing agreement in the area of mobile devices

Huawei and Oppo are rival companies in the smartphone market, so a partnership between the two is unexpected news. However, the two smartphone makers have announced that they are entering into a patent licensing agreement, with the two being able to use each other’s technologies related to 5G, Wi-Fi, or audio/video codecs. Most likely, however, Oppo will pay for technologies developed by Huawei on the connectivity side, as the company has an extensive portfolio of patented technologies in this area.

Oppo and Huawei will lend each other technologies

As a technology company that also develops solutions for telecommunications companies, Huawei holds multiple patents in 5G and Wi-Fi connectivity. Incidentally, Huawei was among the first companies to launch smartphones with 5G and compatible with the new Wi-Fi standards, so Oppo probably wants to access these technologies without investing too much money in research to develop its own solutions.

On the other hand, Oppo has its own advantages in the area of multimedia playback, and audio solutions, which could benefit Huawei in their devices.

Given Huawei’s decline in international sales in the smartphone area, most likely, this partnership will help the company create a new source of revenue that will cover some of the losses in the smartphone area. Since Huawei can’t use its patents to develop 5G phones due to US restrictions, perhaps Oppo will now benefit from improved 5G connectivity, especially as 5G networks are finally starting to expand in Europe.