From the perspective of obtaining the license, only Qualcomm is the manufacturer that can provide 4G chips to Huawei.
Qualcomm has always been one of the main suppliers of Huawei chips. Its revenue consists of QCT (chip business) and QTL (patent business). With its patent advantages in CDMA and other underlying protocols, the company has long collected patents from mobile phone manufacturers.
In the fiscal year 2019 previously released by Qualcomm, the revenue of QTL business was as high as $4.59 billion. However, Huaweis patent accumulation is also rapidly following up, so it will no longer pay the patent fee of Qualcomm since April 2017, and the cooperation between the two companies has also been affected. Subsequently, the share of Qualcomm processors in Huawei has rapidly declined from 40% to a single digit.
A week ago, a spokesman for Qualcomm told reporters that at present, it has obtained licenses for some products (for Huawei), including some 4G products.. This means that the most difficult chip problem in the supply chain has been partially alleviated.
Jia Mo, an analyst with canalys, told reporters that judging from the current situation, more companies may be able to obtain permission from the United States in the future to ship to Huawei again. However, Huawei has not given up the cooperation relationship with large channels while slowing down the shipment, and its market share is expected to stabilize. After the supply chain is stable, Huawei may formulate more radical strategies to regain the market in the future.
However, from the current development trend of smart phones, 5g mobile phones have become the focus of the current market competition, especially in the Chinese market, the 1000 yuan 5g mobile phones are becoming popular.
At the China Mobile 2020 global partners conference, China Mobile chairman Yang Jie said that China Mobile has built the worlds largest 5gsa network, opened more than 385000 5g base stations, and completed the annual goal ahead of schedule this year; it will develop more than 90 million 5g end users and more than 130 million 5g package users.
With the rapid decline of 5g mobile phone price, 5g mobile phone will penetrate the market more and more quickly. Jian Qin, vice president of China Mobile, predicts that the proportion of 5g mobile phones will reach 80% in 2021, and the penetration rate of 5g in 1000 yuan mobile phones will exceed 90% by the end of 2021. In terms of sales volume, China Mobile predicts that the terminal market will exceed one trillion yuan in 2021, and the sales of mobile phones will exceed 350 million, including 280 million 5g mobile phones and 1 billion other intelligent hardware. Jian Qin believes that domestic demand for 5g phones has increased, and China Mobiles target users for in network replacement are nearly 300 million. In October alone, more than 14 million mobile phones were activated by 5g in China Mobiles network. Huaweis global smartphone market share is expected to drop to 4% in 2021, according to market research firm trendforce. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679
Jian Qin believes that domestic demand for 5g phones has increased, and China Mobiles target users for in network replacement are nearly 300 million. In October alone, more than 14 million mobile phones were activated by 5g in China Mobiles network.