Huawei to restart production of 4G mobile phones

Recently, it is reported that Huawei is actively ordering 4G smart phones and related terminal components from suppliers. Some component manufacturers have received a notice that they will resume purchasing motherboard and other components products this month. < p > < p > on November 24, first finance reporter verified the above information to China for the supply chain. A Huawei supplier, who did not want to be named, told reporters that new 4G mobile phone orders have begun to be prepared in succession. “At present are small batch rolling orders, the specific order quantity has not yet been able to estimate.” The Huawei supplier told reporters that according to the market order shipping rhythm, the mobile phone orders at this stage are expected to be on the market in the first half of next year. Judging from the time point, the earliest will be in the first quarter. However, Huawei’s internal staff told reporters that the supply of 4G chips can solve the demand for mobile phones and tablets in most of the overseas regions. In this way, the channels in the major overseas regions can be maintained, the team and the kindling will be retained, and the opportunity to turn over the market in the future can be waited for. “At present, Eastern Europe, Russia, Asia Pacific, Middle East, Africa and Latin America are still 4G markets. Some regions only provide 4G networks, and 4G products are still competitive.” < p > < p > Qualcomm has always been one of the main suppliers of Huawei chips. Its revenue consists of QCT and QTL. With its patent advantages in CDMA and other underlying protocols, the company has long collected patents from mobile phone manufacturers. < / P > < p > in the fiscal year 2019 previously released by Qualcomm, the revenue of QTL business was as high as $4.59 billion. However, Huawei’s patent accumulation is also rapidly following up, so it will no longer pay the patent fee of Qualcomm since April 2017, and the cooperation between the two companies has also been affected. Subsequently, the share of Qualcomm processors in Huawei has rapidly declined from 40% to a single digit. < / P > < p > it is worth noting that on November 4, us time, in its fourth quarter earnings report, Qualcomm said it had received $1.8 billion in patent fees paid by Huawei. Huawei has created an opportunity to expand the potential market for Qualcomm’s mobile chip business, Cristiano Amon, President of Qualcomm, said at the financial report meeting. If you can get permission to sell to China, it will be a completely positive opportunity. < / P > < p > and a week ago, a Qualcomm spokesman told reporters, “we have already obtained licenses for some products, including some 4G products.”. This means that the most difficult “chip” problem in the supply chain has been partially alleviated. < p > < p > it is understood that prior to this, Qualcomm actively promoted the U.S. government to allow it to cooperate with Huawei, seeking to re-establish cooperation with Huawei on 4G chips, mainly undertaken by Huawei Xi’an Research Institute. After obtaining the license, Huawei is expected to increase its supply capacity on 4G mobile phones. < p > < p > canalys analyst Jia Mo told reporters that judging from the current situation, more companies may be able to obtain permission from the United States in the future to ship to Huawei again. However, Huawei has not given up the cooperation relationship with large channels while slowing down the shipment, and its market share is expected to stabilize. After the supply chain is stable, Huawei may formulate more radical strategies to regain the market in the future. However, judging from the current development trend of smart phones, 5g mobile phones have become the focus of current market competition, especially in the Chinese market, which is becoming popular. At the 2020 Global Partner Conference of China Mobile, Yang Jie, chairman of China Mobile, said that at present, China Mobile has built the world’s largest 5g SA network, opened more than 385000 5g base stations, and completed the annual target ahead of schedule this year; it will develop more than 90 million 5g end users and more than 130 million 5g package users. < / P > < p > however, with the rapid decline of 5g mobile phone price, 5g mobile phone will penetrate the market more and more quickly. Jian Qin, vice president of China Mobile, predicts that the proportion of 5g mobile phones will reach 80% in 2021, and the penetration rate of 5g in 1000 yuan mobile phones will exceed 90% by the end of 2021. In terms of sales volume, China Mobile predicts that the terminal market will exceed one trillion yuan in 2021, and the sales of mobile phones will exceed 350 million, including 280 million 5g mobile phones and 1 billion other intelligent hardware. < p > < p > Jian Qin believes that domestic 5g purchase demand has increased, and China Mobile has nearly 300 million target users for in network replacement. In October alone, more than 14 million mobile phones were activated in China Mobile’s 5g network. Counterpoint announced top 5 best selling models: domestic iPhone 11 tops the list