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According to analyst Ming-Chi Kuo, known as a “partner” with very accurate statements and predictions about Apple’s upcoming products, Huawei could collapse and have to withdraw. smartphone market, if things go wrong.
The United States has been targeting Huawei since last year. It begins with the inclusion of Huawei in the list of entities, which leads to the impossibility of cooperating with American technology companies such as Google. As a result, Huawei smartphones cannot install familiar Google apps and services.
The latest US punishment, which is to prevent Huawei from cooperating with semiconductor maker TSMC, also makes Huawei no longer able to make its own Kirin chips. The United States is also preventing Huawei from cooperating with Qualcomm to buy Snapdragon chips.
The reason the US can do this, even if TSMC is a manufacturer in Taiwan, is that most of the current chip production lines still use US technology. Therefore, under the new rules, these manufacturers must apply for a special license if they want to continue supplying chips to Huawei after September 15.
Kuo said that even if Huawei finds a way to procure components for smartphone manufacturing, market share and competitiveness will be seriously affected.
From threatening Samsung’s number one position, to the possibility that is almost nonexistent
In the second quarter of 2020, Huawei once surpassed Samsung to become the world’s # 1 smartphone maker. But by 2021, Huawei’s smartphone sales are expected to drop 71%. That has also led to a plummet in demand for processor chips, 5G chips, and camera sensors, affecting the entire industry.
The best-case scenario is that Huawei’s market share declines, and the worst-case scenario is that Huawei will have to withdraw from the smartphone market, Kuo said. According to an earlier report, Huawei could lose 30% of its domestic market share to other Chinese smartphone makers.
Mr. Kuo’s prediction also thinks it will happen. He also believes that Oppo, Xiaomi, Vivo, and even Apple will benefit greatly from that.
See Phonearena
