Huawei may have been supplied with Qualcomm 4G chips, but it will not help stop the slump reported that “Huawei has recently begun to purchase Qualcomm’s 4G mobile phone chip products”, which can be said to be a blessing for Huawei, which is currently facing chip supply problems. This is indeed a big support for Huawei’s mobile phone business. However, if Careful analysis will find that this support for it is relatively limited, and the slump may be difficult to stop.

Huawei may have been supplied with Qualcomm 4G chips, but it will not help stop the slump

1. Huawei mobile phones fell in both domestic and foreign markets

Since the third quarter of last year, Huawei’s mobile phone has shifted its business focus back to the domestic market. As a result, its proportion of shipments in the domestic market has continuously increased significantly. According to data released by the market research agency IDC, Huawei’s mobile phone shipments in the domestic market in the third quarter The volume was 35.1 million units, accounting for nearly 70% of the total shipments.

Relying on the domestic market, Huawei’s mobile phone once stabilized its position and even increased its shipments, but in the third quarter of this year, the overall shipment of Huawei’s mobile phones began to plummet. IDC data shows that in the third quarter, Huawei’s overall mobile phone shipments fell by 22.0% year-on-year, which was larger than the 15.5% decline in its shipments in the domestic market, indicating that the overseas market has collapsed. momentum.

According to data from market research agency Canalys, Huawei’s mobile phone shipments in the European market fell by 31% year-on-year in the third quarter, with a market share of only 14%, ranking fourth in the European smartphone market. When Huawei’s mobile phone was at its peak in the European market, it once won the second place in the European smartphone market, and its market share was nearly double that in the third quarter. The market share was nearly halved in one year, which can be described as tragic.

2. Qualcomm recovery chip has limited support for Huawei mobile phones

The decline in shipments of Huawei’s mobile phones in the domestic market was mainly due to the further measures taken by the United States this year, which caused Huawei to face difficulties in chip supply. Now that Qualcomm has resumed supplying 4G chips to Huawei, it has not completely solved the problem for Huawei.

Qualcomm only supplies 4G chips, while Huawei’s mobile phone sales in the domestic market are mainly 5G mobile phones. 5G mobile phones account for more than 60% of the Chinese market. With Apple’s launch of the 5G version of the iPhone, the proportion of 5G mobile phones in the domestic market is expected to further increase. To nearly 80%, the 4G chips supplied by Qualcomm do not make much sense for Huawei mobile phones in the domestic market.

Mobile phone companies mainly sell 4G mobile phones in markets other than China. After all, only a limited number of markets such as South Korea and China have started commercial 5G in the global market. Other countries either have no plans to build 5G networks, or 5G networks have just begun. Therefore, most overseas markets mainly sell 4G mobile phones.

Huawei mobile phones can sell 4G mobile phones to overseas markets by obtaining Qualcomm’s supply of 4G chips, but as mentioned above, since the third quarter of last year, Huawei’s mobile phones have not been troubled by chip supply, but mobile phone shipments have continued to decline, which is obviously not the supply of chips. problems, but because of obstacles to cooperation with Google.

Since the fourth quarter of last year, Huawei mobile phones have no longer been authorized by Google’s GMS services, and overseas consumers just need Google’s Google Maps, Google Search, YouTube and other applications. Without these applications from Google, smartphones have almost become feature phones. The main reason for overseas consumers to abandon the purchase of Huawei mobile phones. Although Qualcomm has resumed supplying 4G chips to Huawei, Google has not resumed its cooperation with Huawei, so the downward trend of overseas mobile phone business may continue.

As a result, even if Qualcomm resumes supply of 4G chips, there is limited support for Huawei, which mainly sells 5G mobile phones in China, and overseas markets continue to suffer heavy losses due to Google’s obstruction, so it is even more difficult for Huawei’s mobile phone business to stop falling.

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