Renowned analyst Ming-Chi Kuo talks about Huawei’s future potential if pressure from the United States does not ease with its smartphone division.
It began as something almost curious and seemingly transitory, almost anecdotal. But the United States trade blockade imposed on Huawei It has been going on for over a year now and with each new phase it has only complicated things.
In the most recent stage of turns TSMC has been forced to stop producing the famous Kirin processor of its smartphones.
This put them in a situation where they were practically forced to end their stock of components and start a race against time to find a new form of supply in that span.
The scenario is complex and the renowned analyst Ming-Chi Kuo, famous for his correct predictions around Apple, has published a new report in which he raises the frank possibility that Huawei will close its division dedicated to the manufacture of smartphones.
Kuo, in his role as an analyst at TF International Securities, basically marks only two scenarios:
- May the situation improve drastically and Huawei can produce chipsets again to regain strength.
- Or that the current trend be followed for Huawei to lower its market share below the global 30%. A big hit considering his figures from years past.
But there is hope
TSMC has stopped producing components for Huawei, as a result of the blockade imposed by the Donald Trump administration, yes.
But Mediatek has started the process of obtaining a special permit that allows it to become the new supplier of Huawei.
There has even been talk of the possibility of Qualcomm also integrating its Snapdragon into the business. So nothing is lost.
It’s just a matter of being patient and waiting to find out how this is resolved.
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