Huawei deputy chairman Guo Ping (pictured) told staff the company would not exit the smartphone business despite severe supply chain issues, CNBC reported, tipping developments in China’s chip manufacturing sector to fuel a return to its former position.
Citing comments made in a Huawei internal Q&A session, the news website noted the company planned to continue developing its device technologies while supporting local partners to advance manufacturing capabilities.
Once Chinese businesses are able to meet its semiconductor production requirements Ping, who is one of the company’s rotating chairmen, expects Huawei to return to the “smartphone throne”.
In the meantime he said the company was “stuck” being able to design, but without the ability to get the advanced chips produced.
Huawei’s share [1] of the global smartphone market and related earnings [2] tumbled in the wake of US sanctions, [3] which have severely limited its ability to source high-end components [4] from third parties for its handsets.
Unit shipments were also dented by the sale of sub-brand Honor, which falls outside of trade restrictions as an independent business [5].
Huawei is currently the subject of US trade restrictions on claimed security grounds, mostly related to its networks business. The company has frequently denied all security allegations [6] made against it.
[1] https://www.mobileworldlive.com/devices/news-devices/smartphone-shipments-close-in-on-300m-units-in-q2
[2] https://www.mobileworldlive.com/featured-content/home-banner/huawei-goes-into-survival-mode
[3] https://www.mobileworldlive.com/featured-content/home-banner/huawei-lands-on-us-trade-blacklist
[4] https://www.mobileworldlive.com/featured-content/top-three/huawei-goes-without-5g-in-p50-range
[5] https://www.mobileworldlive.com/featured-content/devices-home-banner/honor-looks-for-magic-touch-with-post-huawei-launch
[6] https://www.mobileworldlive.com/featured-content/home-banner/huawei-rural-blow
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