We all know Huawei to
be the largest smartphone maker in the world, but that status can be challenged
today as the company is finding it challenging to assemble key parts for the
phone thanks to US trade ban!
When the United States
banned trade with Huawei, it actually interfered with its business with all US-based companies including Qualcomm and Broadcom. On top of this, South Korean
outlets like Chosun Biz, Korea’s LG, and Samsung have also decided to restrict
the premium smartphone display supply to Huawei. The decision is locked and
will be effective from September 15th.
We’re not sure what
premium connotes here but the apparent reports suggest it could refer to the Samsung-made OLED displays – Huawei’s flagship. Just to give you a context, Huawei uses
Samsung’s OLED displays for its P40 Pro phone.
LG and Samsung are the
top two suppliers of displays in the world and their decision to ban trade with
Huawei will impact the brand heavily.
Now, Huawei has no other
option but to procure displays from Chinese companies like BOE, Tianma, CSOT,
and Visionox, etc. We’re not sure whether these displays will be as good as the
ones users were previously used to.
Apart from the
displays, Huawei will also need new suppliers for power management and touch
controller chips because even Hynix has marked a territory.
One thing is clear that,
for the next couple of months, Huawei is in a lot of trouble as it will face issues
producing the desired volumes of smartphones. The company already announced
that it will only produce 50 million smartphones in the coming year, which is a shocking 74% decline compared to this year’s