قالب وردپرس درنا توس
Home / Technology / Huawei smartphone business in jeopardy as US cuts access to advanced chips

Huawei smartphone business in jeopardy as US cuts access to advanced chips



All of this is at stake following recent US sanctions against the Chinese tech champion. Consumers all over the world were already abandoning the brand because phones no longer come with some popular American apps. Now, a blow to its hardware supply chain is giving it an edge in the Chinese market on shaky ground.

The company will lose its supply of Kirin super fast, advanced starting chipets from next month because they are made by contract manufacturers using US technology, Huawei consumer business head Richard Yu said at a conference last week.

“This is a very big loss for us,” Yu said Friday, according to the Associated Press and numerous local media reports. Huawei declined to comment on the reports.
Huawei chipmaking subsidiary HiSilicon designs Kirin chips, and then contracts the Taiwan Semiconductor Manufacturing Company (TSMC) to make them. But earlier this year, the Trump administration banned any semiconductor manufacturer using US technology from supplying Huawei without first obtaining a license to do so. This restriction applies to TSMC. The company did not immediately respond to a request for comment if it had applied for a license to sell products to Huawei. In a revenue call last month, TSMC chairman Mark Liu said the company is in compliance with U.S. rules, and plans to stop shipping chips to Huawei after Sept. 1
4.

Losing a point of sale

Huawei should have enough Kirin chipsets to spend this year, said Nicole Peng, an analyst with market research firm Canalys. After that, the company is likely to return to MediaTek, another Taiwanese chipmaker. Will Wong, an analyst with IDC, said Huawei would still be able to buy that company’s chipset “off the shelf”.

But using standard MediaTek chips will erode Huawei’s competitive advantages when it comes to hardware, analysts said. The loss of the Kirin chipsets “will definitely affect the unique selling point” of Huawei smartphones, Peng said.

Kirin chips are specially created to power Huawei more expensive devices. They are faster and more advanced than MediaTek chipsets, and have better artificial intelligence, imaging and 5G capabilities, according to Peng. This is why Huawei uses them in flagship phones, such as its Mate and P models.

Being “unable to produce Kirin chips will create a great deal of uncertainty for him” [Huawei], especially for their high-end phones, “Wong said.” However, Huawei still has a strong national brand image in China, which is an excellent “promoter” for the company.

The fall of Samsung makes Huawei for the first time the largest smartphone brand in the world, the report says

The advantage of the house

Huawei surpassed every other brand in China last quarter, sending about 40 million smartphones to China, up more than 8% compared to the same period last year, according to Canalys and IDC.

These rapid sales in mainland China, along with the downfall of rival Samsung, also helped Huawei overtake the South Korean company to become the world’s top smartphone seller.

Stores in China reopened earlier than other countries still struggling with the Covid-19 pandemic, helping boost Huawei sales. However, analysts say Huawei is likely to fall behind again as stores reopen and sales resume in other global markets.

Huawei International the smartphone business was already struggling after the United States imposed a special restriction on the company last year that banned U.S. firms such as Google (googl) from its supply of technology and software. As a result, Huawei’s latest smartphones do not have access to popular apps like Gmail, YouTube and Google Maps, making them much less attractive to buyers outside of China.
Prior to U.S. restrictions, Huawei sales outside China accounted for nearly half of smartphone shipments. Now, it sells over 70% of its smartphones in China, according to Canalys.
And even at home, Huawei faces stiff competition from domestic rivals Vivo, Oppo and Xiaomi, who have all established relationships with chipset makers like MediaTek and Qualcomm (QCOM), said Peng.

With the company forced to rely on less powerful chips used by many of its domestic competitors, it is likely to lose its home advantage.

“These vendors will continue to expand aggressively as Huawei is weakening next year in China,” Peng said.


Source link