HUAWEI COMPANY MAY ABANDON THE MARKET OF SMARTPHONES

The predicament of Huawei is forcing analysts to make big assumptions about the future of the Chinese brand. In particular, as noted by an expert from the Middle Kingdom, Min-Chi Ko, the US sanctions could lead the company to the loss of its share in the smartphone market. The pessimistic scenario of the development of events generally speaks of the complete withdrawal of Huawei from the market. So, how likely are these assumptions?

The credibility of Min-Chi Ko's opinion is based on the analysis of the nature of the sanctions that the US authorities have imposed on the company's activities. First of all, the enterprises of the brand may suffer the lack of the component parts.

The bans imposed on the company’s purchase of American equipment last year may lead to a shortage of necessary parts for the production of gadgets.

It is noted that the company had difficulty, but managed to cope with the first blows when Huawei smartphones were inflicted by Google, which stopped supporting its services. The next blow was the situation with processors, forcing the company to buy semiconductors (including memory chips). A ban on the purchase of such goods produced in the US comes into force on September 14.

The leading chip supplier TSMC has already announced it will stop accepting orders from the company on September 15th. This shook up the market, driving up the prices of memory sticks. At the same time, analysts note that this is unlikely to change the general market trend towards a decrease in prices, although it may somewhat correct the general market trend.

Against the backdrop of the US sanctions, the Chinese corporation has become more active in the Russian market, investing in the development of Russian scientists and research teams.

What will happen if the world's leading smartphone brand phases down the sales? Experts note that in this case, such competitors as Apple, Xiaomi, etc., can occupy the vacant market niche.

On the other hand, smartphones is not the only business area in which Huawei still holds a leading position. Another strong point of the company is the cloud computing business. Huawei successfully sells storage technology solutions and artificial intelligence capabilities to the companies. At the same time, the company can still buy American chips for this type of business. And this is not to mention the sales of Huawei communication equipment, which is successfully used all over the world, as well as in Russia.