View of a Huawei store in Henan Province in Central China in November 2020 Photo: cnsphoto
Huawei is ready to release its new foldable handset MateX2 series on Monday, according to a move by analysts showing that the Chinese technology giant has ambitions to push its exclusive phone series despite the US ban that reduced the key to chip supplies and damaged the chip design business.
According to Huawei’s previous announcement, the Chinese brand̵
It is also the first new product the company will unveil after the Chinese lunar new year.
“The new product launch shows that the company may not give up on the exclusive smartphone market, at least in the short term,” Ma Jihua, a veteran analyst and a close supporter of Huawei, told the Global Times on Sunday.
Reuters reported in late January that Huawei is in an early stage of selling its premium smartphone brands P and Mate series, citing two people with direct knowledge of the case. The report also said that the move could lead to Huawei “eventually quitting high-end smartphone production.”
Huawei denied the reports and said it has no plans to sell the mobile phone business at all, the company told the Global Times earlier.
Ma noted that the continuous launch of advanced products may also indicate that Huawei is conducting research and development of its proprietary Kirin chipset despite the US ban, which only with the support of its own chip capability, Huawei can upgrade the features of the phones and compete in the smartphone market.
However, analysts said the severe chip shortage will continue to drag on phone shipments and lead to a loss of market share.
According to a report from Nikkei Asia, Huawei will more than halve the smartphone product in 2021 due to a serious chip shortage. It is reported that Huawei suppliers were notified to reduce production, and the company expects that mobile shipments in 2021 will fall by more than 60 percent to around 70 million units.
“The decline in telephone shipments is likely to lead to a 20-30 percent drop in revenue next year,” Ma predicted, noting that Huawei’s profit margin could increase.