Huawei's Re-emergence Is Not A Threat To Apple's Strong Ecosystem

Apple Inc AAPL iPhone's Chinese rival Huawei Technologies Co, Ltd continues to hit the headlines, this time by reaching a global patent cross-licensing deal with Chinese smartphone company Xiaomi Corp XIACF XIACY.

The deal covers communication technologies, including 5G, and marks the resolution of a patent licensing dispute between the two firms, Reuters reports.

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In March, Huawei prosecuted Xiaomi for alleged infringement of four registered patents mainly related to wireless communication technology, smartphone photography, and screen lock technology.

In September, Huawei launched a smartphone with an advanced made-in-China processor amid escalating geopolitical tensions between the U.S. and China.

Huawei also has patent license agreements with other tech players like Oppo and South Korea's Samsung Electronics Co, Ltd SSNLF and  Ericsson ERIC.

In July, Huawei said it received $560 million in royalty revenues in 2022.

Meanwhile, Apple slashed the prices for its iPhone 14 series in China following the launch of the iPhone 15 lineup.

Prices for the 128-gigabyte version of iPhone 14 were cut by 600 yuan to 5,399 yuan ($740.50), while the iPhone 14 Plus is selling at 5,999 yuan, down from 6,999 yuan at launch.

China flagged security problems with iPhones amid reports of Beijing expanding a ban on using the devices in sensitive departments to government-backed agencies and state companies.

Morgan Stanley does not see Huawei's re-emergence into the 5G smartphone market as a threat to Apple, as its ecosystem in China remains very strong. Huawei smartphone volumes will likely be relatively small, as per analyst Erik W. Woodring.

Price Action: AAPL shares traded higher by 0.05% at $176.38 premarket on the last check Wednesday.