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Huawei is ‘open’ to selling 5G chips to its rivals Apple

Huawei, after overtaking Apple on being the world’s second largest selling smartphone is having a big change of strategy in its 5G network.

5th Generation or simply 5G has been a promising network for all smartphone users. It offers faster and more steady mobile internet. Huwaei, so far, is the only smartphone manufacturer that applies 5G in their mobile devices. But that could change.

The Chinese smartphone giant is considering to sell 5G chips to its American rival Apple. “We are open to Apple in this regard,” said Ren Zhengfei, CEO of Huawei. While Balong is the chip mainly used by Huwaei, the Balong 5000 chipset, which was developed also by Huawei, may be convenient to Apple.

Huawei can also be a potential dealer of 5G chips, competing with Qualcomm and Intel. Richard Yu, CEO of Huawei’s Consumer Business Group says, “The Balong 5000 will open up a whole new world to consumers.”

Huawei entered the smartphone industry with the purpose to sell affordable phones. After years, Huawei has emerged to manufacturing big selling phones and modems and became a potential competitor of Samsung and Apple.

IDEOS, the first ever smartphone released by Huawei, is an affordable smartphone with Google’s Android 2.2 operating system. The strategy of releasing a cheap smartphone was a lesson learned by Ren. “We set prices based on our costs, which were relatively low. Our costs were low for two reasons. First, as our technology advanced rapidly, we managed to bring down the costs of our products. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low,” he said.

After the failed strategy, Huawei then raised its price. “We have raised our prices and now many people think Huawei is expensive,” Ren added.

Meanwhile, Zhengfei acknowledges Apple as a ‘great company’ saying, “Mr. Jobs was great not because he created Apple, but because he created an era, the mobile internet era.”

Ren also commemorates Jobs’s death. “When he passed away, I was on a vacation in the mountains with my family. My younger daughter is a fan of Mr. Jobs, so she proposed that we stop for a moment of silence to mourn him, and we did,” he added.

Apple has not yet commented on the matter.

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