Huawei has asked its suppliers to increase component shipments, according to a Nikkei report. By doing this, Huawei wants to secure smartphone components for a summer launch of new models, while the company is also attempting to avoid any supply disruptions by doing this.
Huawei’s mass production of its latest smartphone models will go into full swing in early summer, which is why Huawei needs its suppliers to boost production by that time. The Huawei P30 series will become official at the end of March, as the company already scheduled a press conference for March 26. The Huawei P30 Lite, P30, and P30 Pro will be in high demand this summer, or at least Huawei expects them to be, as those three devices are probably the main reason behind this decision.
The source notes that Murata Manufacturing has received double the usual volume of orders from Huawei, and will boost shipments accordingly. Issues with the US are another reason why Huawei did this, the company is attempting to avoid any disruptions, like component shortages, which ZTE struggled with.
Huawei’s spokesperson also added that Huawei “expects sustained growth once more this year”, and that the company will “expand cooperative relationships with Japanese partners”. Huawei managed to sell over 200 million smartphones in 2018, and the company is aiming to increase that number to 250 million this year, so they will need more components than ever.
Huawei is aiming to overthrow Samsung at some point, and become the largest smartphone manufacturer in the world. The company is actually aiming to do this by the end of this year, though that will be extremely hard to do, but who knows what will happen in a year or two, as Huawei’s shipments and market share have been growing rapidly over the last couple of years, and the company managed to get really close to Samsung.
Nikkei also notes that Rohm Semiconductor will also increase supplies of integrated circuits and camera-related parts following Huawei’s request, and those increases will be felt by May. On top of that, Kyocera received additional orders from Huawei for circuit parts, while Toshiba Memory was asked to increase flash memory production.
Huawei makes its own semiconductors, as many of you probably already know, but it does get other smartphone parts from Japanese and American sources, for the most part. Considering its difficulties with dealing with the US, Huawei apparently has to look elsewhere for smartphone parts, mainly in order to prevent shortages, as already mentioned.
Huawei actually said that it plans to do $8 billion worth of business with Japanese suppliers this year, which is a considerable increase compared to last year, when Huawei spent $6.6 in that regard. It is also worth noting that Huawei sued the US government quite recently, you can read more about that by clicking here. Things are getting more and more complicated between the two countries, it seems, and the solution seems to be further than ever. It remains to be seen what will this lawsuit bring, whether Huawei will come out on top or not.