News

Ming-Chi Kuo: Huawei may exit mobile phone market in worst-case scenario

Huawei’s competitiveness and market share in the mobile phone market will be negatively impacted regardless of whether it can get mobile phone parts after September 15, the famous analyst Ming-Chi Kuo said in a report released today.

Ming-Chi Kuo said that the best-case scenario is that Huawei’s market share declines, and the worst-case scenario is that Huawei exit the mobile phone market. Apple, Oppo, Vivo, and Xiaomi are expected to increase their market share.

Since Huawei mobile phones have much higher requirements for the camera, HDI, storage and 5G chip parts specifications and unit prices than other Android competitors, if Huawei’s competitiveness declines, the technology upgrade trend of cameras, storage, 5G chips, and other components will slow down, Kuo predicted.

Therefore, the mobile phone parts industry chain will face greater pressure to cut prices in 2021.

Earlier, the US Department of Commerce further tightened restrictions on Huawei’s access to US technology, and at the same time included Huawei’s 38 subsidiaries in 21 countries/regions on the “entity” list.

Earlier this week, MediaTek stated that the company had filed an application to the United States in accordance with regulations, with the aim of continuing to supply Huawei after September 15.

According to the details of the ban previously announced by the United States, although Huawei’s Kirin chip production is prohibited, this does not affect third-party chip design companies that provide Huawei with standard products. MediaTek is expected to become the main supplier of Huawei’s outsourcing chip program.

But on August 17, the U.S. Department of Commerce issued a revised ban on Huawei, which further restricted Huawei’s right 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 will not be able to supply chips to Huawei after September 15.

David Tian

David is the editor @ MyFixGuide. He loves technology, especially good at laptops and mobile phones. In his free time, he loves to take apart the latest mobile phones and laptops. Contact me at admin@myfixguide.com

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

65 + = 70

Back to top button
Close