Ming-Chi Kuo pointed out in a report released today that regardless of whether Huawei can obtain mobile phone components after September 15, its competitiveness and market share in the mobile phone market will be negatively affected.
Ming-Chi Kuo said that the best-case scenario is that Huawei’s market share declines, and the worst-case scenario is that Huawei exits the mobile phone market. It is expected that the market shares of Apple, OPPO, vivo, and Xiaomi will increase.
Since Huawei mobile phones have much higher requirements for camera, HDI, storage, and 5G chip specifications and unit prices than other Android competitors, if Huawei’s competitiveness declines, the technology upgrade trend for cameras, storage, 5G chips, and other components will slow down, Kuo predicted.
Therefore, the mobile phone components industry chain will face greater pressure to cut prices in 2021.
Previously, the U.S. Department of Commerce further tightened restrictions on Huawei’s access to U.S. technology and added 38 of Huawei’s subsidiaries in 21 countries/regions to the entity list.
Earlier this week, MediaTek stated that the company has submitted an application to the United States in accordance with relevant regulations to continue supplying Huawei after September 15.
According to the details of the ban previously announced by the United States, although the production of Huawei’s Kirin chips is prohibited, this does not affect third-party chip design companies that provide standard products to Huawei. MediaTek is expected to become the leading supplier of outsourced chip solutions for Huawei.
However, on August 17, the U.S. Department of Commerce issued a revised ban on Huawei that further restricted its ability to use products made with American technology and software. This means that MediaTek will need to submit an application to the United States. Otherwise, it cannot supply chips to Huawei after September 15.