Home News The US Supply Chain Ban Will Hurt Huawei Phone Sales Much Less...

The US Supply Chain Ban Will Hurt Huawei Phone Sales Much Less Than Initially Thought

When Huawei was included in the list of entities of the US Department of Commerce. In May, it seemed that the producer was in a bad year; After all, the company was banned from purchasing components and software from its US supply chain. Companies like Google, Qualcomm, Micron and ARM Holdings have ties with the company and the rest of 2019 seemed bleak. In 2018, Huawei had sent 206 million phones worldwide, good enough for third place after Samsung and Apple, and was expected to get first place next year. But a strong first quarter that saw an increase in telephone deliveries from 50.3% to 59 million made many analysts think that Huawei would surpass Samsung in the fourth quarter of 2019.

But then the list of entities arrived. And although Huawei has sent another 59 million units in the second quarter with an annual gain of 33% and a total of 118 million in the first half, the company has traditionally recorded a significant improvement from the first quarter to the second quarter. The fact that this number was flat indicated in a sequence that the US ban. It was having a negative impact on Huawei, which the company admitted in June. But how much effect does it have? After all, the manufacturer continues to launch new Android phones and earlier this week launched an advance for its Kirin 990 chipset; The latter will contain the CPU cores designed by ARM, including the latest and the best Cortex-A77. Huawei has a perpetual license for the ARMv8 license which allows it to introduce new chips like Kirin 990 and Ascend 910 AI announced last week. Huawei says the 7nm chip is the most powerful AI chipset in the world. Huawei had to stop using chip design software from US companies like Cadence Design Systems Inc and Synopsys.

Huawei’s rotating president says the 90-day breaks offered by the US government make no sense

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In June, Ren Zhengfei, founder and CEO of Huawei, said the US ban would cost it $30 billion in smartphone revenue. But Huawei’s rotating president, Eric Xu, provided an updated and informed Reuters estimate. The manager said that consumer group of Huawei, the unit that includes smartphones, is better than expected, but notes that it could lose $10 billion in smartphone revenue due to the ban. The division raised 349 billion yuan ($ 49.2 billion) last year and generated sales of 221 billion yuan ($31.1 billion) during the first half of this year.

Days after the US announces that Huawei has been included in the list of entities. Huawei was offered the opportunity to obtain a special 90-day license. This specifically allowed them to send to the manufacturer the components and software “necessary to maintain and support existing and fully operational networks and equipment, including software updates and patches … to existing Huawei phones”. When the first 90-day period expired earlier this month, the Commerce Department offered Huawei US suppliers the opportunity to obtain another 90-day special license. Xu, from Huawei, says that these 90-day postponements “don’t make sense” for Huawei and that the company’s employees are working well to avoid the ban.

Next month, Huawei should present the Mate 30 series, including its new premium model Mate 30 Pro. The latter should feature a 6.7-inch AMOLED cascade screen with both sides deployable at an angle of 88 degrees. Those who look directly at the screen will have difficulty detecting the side frames of the phone. There will be a four-camera configuration on the back, which includes a flight time sensor (ToF) for improved bokeh effect in portraits and a battery with a capacity of 4500 mAh will keep the lights on. This could be followed in November with the launch of the Huawei Mate X fold.

(Via: Reuters)

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