Huawei is making a comeback in the smartphone market with its Mate 60 series, despite previous setbacks caused by U.S. actions. This resurgence is largely attributed to the use of their domestically developed Kirin 9000S chipset with 5G capabilities, showcasing Huawei’s efforts to reduce reliance on U.S. chip suppliers. However, Huawei’s growth prospects could face challenges due to potential U.S. policy changes, such as stricter export controls on essential chipmaking equipment and AI chips.
Despite facing hurdles, Huawei’s Mate 60
series is experiencing strong sales, further establishing its presence in the
smartphone market. However, the surge in demand has led to higher prices for
crucial components, particularly the under-screen optical fingerprint modules
essential for Mate 60 devices. These component prices have seen an increase of
15-30%. Key providers of these chips for the Mate 60 lineup are Goodix,
GigaDevice (Siliwei), and Weier Technology (Jihao Technology).
The Huawei P70, set to be released in
2024, is expected to retain the under-screen optical fingerprint technology
used in the Mate 60 series, as per supply chain sources. Additionally, it may
feature the Kirin 9000S chipset, which has been previously reported. Huawei
aims to double its smartphone exports in 2024, targeting 60 to 70 million
units. To meet the demand, the company is prioritizing the acquisition of
optical fingerprint modules, which have seen price increases due to high
demand. Huawei appears to be actively building inventory in preparation for a
smooth launch and distribution of the P70 flagship.
Huawei has faced challenges in the past
month due to consistently high-volume orders from partners, which have strained
the availability of crucial components and disrupted production rates. However,
Huawei remains committed to its ambitious goal of shipping 60-70 million
smartphones in the upcoming year, with the P70 expected to play a central role
in the company’s strategy. Additionally, they will also cut ties with Qualcomm
and exclusively use its in-house Kirin processors for new models starting in
2024.
