According to media reports, Qualcomm has obtained permission to supply chips to Huawei, but only for 4G chips. This is of limited significance to Huawei and will not help the development of Huawei’s mobile phones.
In overseas markets, there is still a large market for 4G mobile phones. Samsung, Apple and other Chinese mobile phone brands sell mainly 4G mobile phones in markets outside of China. This is because overseas markets have only limited commercial 5G networks in countries.
At present, China has entered the 5G era. The mobile phones sold in China have become 5G mobile phones. With the launch of the iPhone 12 that supports 5G, the share of 5G mobile phones in the domestic mobile phone market will further rise to more than 70%, leaving enough space for 4G mobile phones. limited.
Qualcomm has obtained permission to supply 4G mobile phone chips to Huawei, which means that Huawei can sell 4G mobile phones in overseas markets. However, the sales of Huawei mobile phones in overseas markets continue to shrink. The main reason is that it has obstacles in cooperation with Google, which has an Android system, and Huawei phones cannot Equipped with Google GMS service, Huawei mobile phones lacking Google GMS service are difficult to obtain support from overseas consumers.
It is precisely because of obstacles to cooperation between Huawei mobile phones and Google that it has shifted its business focus back to the domestic market since the third quarter of last year, and its mobile phones sold in the domestic market accounted for nearly 70% of mobile phone shipments. The development of the domestic market is the hope of survival.
However, as mentioned above, the domestic market has entered the 5G era, and 4G mobile phones will account for only about 30% of the domestic mobile phone market. In the future, as the price of 5G mobile phones further drops to less than 1,000 yuan, 4G mobile phones in the domestic mobile phone market will inevitably shrink further. In this way, even if Qualcomm supplies 4G mobile phone chips to Huawei, it does not make much sense for Huawei mobile phones.
The industry generally expects that with the shrinking of Huawei's mobile phones, Xiaomi will replace Huawei to enter the world's top three. Data in the third quarter shows that Xiaomi's mobile phone shipments have soared by more than 40% year-on-year, and the gap in shipments between the two has been reduced to less than 10%. Even if Qualcomm supplies Huawei with 4G mobile phone chips, it seems that it cannot stop this trend. It seems that Huawei's mobile phone falling out of the top three in the world in the fourth quarter is an inevitable result.
In 2019, the mobile phone business contributed more than half of Huawei’s revenue. It can be said that the mobile phone business has become Huawei’s main business. In the third quarter of this year, Huawei’s mobile phone shipments fell by more than 20% year-on-year. If Huawei’s mobile phones continue to shrink Going forward, the blow to Huawei will be greater.
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