Apple Rival Huawei Doubles Smartphone Sales As US Restrictions Prepare to Kick In
Portfolio Pulse from Anusuya Lahiri
Huawei Technologies is planning to double its smartphone sales in 2024, aiming to ship 60 to 70 million units, despite potential U.S. restrictions. The company has been stockpiling essential components and urged Qualcomm, its sole U.S. supplier of 4G mobile chips, to fulfill the entire year's order by June. Huawei has also been manufacturing 5G mobile chipsets with China's leading chipmaker, Semiconductor Manufacturing International Co. However, the U.S. is considering expanding its stringent export controls on chipmaking equipment and AI chips, which could pose challenges for Huawei.
October 10, 2023 | 11:54 am
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NEUTRAL IMPACT
Huawei's ambitious plans could potentially take some market share from Apple in China's premium phone segment. However, Morgan Stanley does not see Huawei's re-emergence as a threat to Apple, as its ecosystem in China remains very strong.
While Huawei's plans could potentially impact Apple's market share in China, Morgan Stanley's analysis suggests that Apple's strong ecosystem in China will likely mitigate any significant impact. Therefore, the short-term impact on Apple's stock is expected to be neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Huawei has urged Qualcomm, its sole U.S. supplier of 4G mobile chips, to fulfill the entire year's order by June, anticipating further U.S. export controls. This could potentially impact Qualcomm's operations and revenues.
Huawei's request for Qualcomm to fulfill the entire year's order by June could potentially impact Qualcomm's operations and revenues. However, the extent of this impact will depend on the U.S. export controls and Huawei's ability to navigate these restrictions. Therefore, the short-term impact on Qualcomm's stock is expected to be neutral.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80