Huawei’s smartphones Sales will be increased

Reference News Network reported on August 5 that Japanese media reported that Qualcomm announced on July 31 that its operating income from July to September 2019 was down by 26% from the same period last year. In China, sales of semiconductors for smartphones will decrease. With the increase in the market share of Huawei’s smartphones that produce semiconductors independently, the pressure on Qualcomm is increasing.

  According to the “Nikkei Business News” website reported on August 2, “Huawei will focus on improving the (smartphone) share in China”, at the July 31 telephone conference, Qualcomm CEO Steve Morenkov List the name of Huawei. In contrast to April-June, which received a settlement payment from Apple, a 73% increase in operating income, and reached US$9.635 billion (US$ 6.9), the expected revenue is reduced by 12-26% from July to September. 4.3 billion to 5.1 billion US dollars.

  According to the report, Morenkov is worried that Huawei will turn the headwind into a driving force and concentrate on developing its business in China.

  Huawei owns the semiconductor subsidiary Hi silicon Semiconductor, and a large number of chips have been self-produced. According to statistics from the US International Data Corporation, from April to June, Huawei’s smartphone shipments in China reached a record high, and its global share remained second.

  In May, Qualcomm was convicted of violating the Anti-Monopoly Law. Judges of the Federal District Court of San Jose pointed out that Qualcomm “abuses the competitiveness of modem chips (for smartphone communications) and charges higher intellectual property fees for violations.” The extent to which Qualcomm controls the smartphone industry is somewhat evident.

  However, with a global modem chip market of $21.5 billion, Qualcomm’s presence is declining. According to data from the US research firm Strategic Analysis, 66% of Qualcomm’s market share in 2014 has fallen to 49% by 2018. The reason is that mobile phone brands such as Huawei are accelerating the self-production of chips.

  The US IDC predicts that the supply of smartphones in 2019 will be reduced by 2% from the previous year and will decrease for three consecutive years. In mature industries, companies in the industry often get as much value as possible to the outside. Qualcomm’s management reiterated that “leading in the 5G field”, but the risk of the disappearance of business opportunities caused by the customer’s self-production has begun to become a reality.

About admin

Leave a Reply

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