[News] Huawei’s Strategic Stockpiling: Aiming for 70 Million Smartphone Shipments

2023-10-11 Consumer Electronics editor

According to Jiwei, Huawei has been actively amassing an inventory of essential components, with the objective of doubling its smartphone shipments next year, targeting a range of 60 to 70 million units.

Numerous sources from the supply chain and industry analysts report that Huawei has been steadily building up its stocks of components, including camera lenses, imaging modules, printed circuit boards, and other essential parts since the start of this year. Additionally, Huawei has urged its exclusive US supplier for 4G chips, Qualcomm, to fulfill the entirety of the annual orders before June.

SMIC, rumored to be a chip supplier for Huawei, is drawing attention with their recent developments. According to employees at a US equipment manufacturer, SMIC likely established production lines for 7nm chips as early as 2018 or 2019. This strategic move was aimed at mitigating the impact of US restrictions and subsequent export controls imposed by Japan and the Netherlands.

In recent years, Huawei’s smartphone business has faced significant challenges due to actions taken by the United States. According to data from market research firm TrendForce, Huawei’s smartphone shipments declined from a peak of 242.5 million units in 2019 (ranking third globally) to 39 million units last year, placing it ninth in the rankings with market share decreased from 14% to 2.9%.

The official release of the Huawei Mate 60 Pro on August 29th appears to be a breakthrough in this situation. Presently, this model has become a long-awaited success story in the consumer electronics market. In addition to suppliers for innovative technologies such as Huawei’s satellite communications and NearLink technology, companies dealing with optical components, display panels, structural elements, and others are all ramping up their production efforts.

During the Huawei Autumn Full-Scene New Product Launch event, Huawei’s Terminal BG CEO and Chairman of the Smart Car Solutions BU, Richard Yu, expressed his satisfaction with the reception of the “Pioneer Plan.” The team is diligently working to meet the soaring demand as swiftly as possible. It’s worth noting that the “Pioneer Plan” encompasses products like the Mate 60 Pro, Mate 60 Pro+, and the foldable screen Mate X5.

(Image: HUAWEI)