At the end of July, we learned that Huawei has become the largest smartphone manufacturer in the world, taking its place from Samsung, driven by its excellent sales in mainland China. But since the Chinese manufacturer has become the target of the United States, its future is threatened. And that’s saying something.
Indeed, since its ban in the country of Uncle Sam, Huawei has no longer been able to benefit from Google's services, which clearly handicaps it. It will also be impossible to work with American companies such as Qualcomm and Broadcom, to supply it with chips. And on the memorandum side, Samsung and SK Hynix will soon drop it.
As if that weren't enough, Chosun Biz, a South Korean media outlet, recently announced that LG and Samsung will no longer be producing premium displays for Huawei, effective September 15. Which does not bode well for the Chinese giant.
Another bad news from the Chinese manufacturer
Of course, it will be understood that the “premium screens” we are talking about refer to the OLED screens available to the best Huawei smartphones. Among the latter we can list the devices of the P40 range, whose OLED screens were developed by Samsung.
As LG and Samsung are Huawei's main suppliers for its smartphone screens, their absence can only be detrimental. The firm will then have to turn to various other Chinese screen manufacturers, such as BOE, CSOT, Tianma or Visionox among others, to try to fill the huge void left.
Even together, however, these companies will never produce as many displays as LG and Samsung, which are the largest manufacturers in the world. In addition, on the quality side, there will certainly be a lot of differences.
All of these worries don't suit Huawei
Also according to Chosun Biz, via Mashable, Huawei would also have a hard time procuring display chips and touch controllers. And to top it off, as we reported to you recently, Samsung and SK Hynix will soon no longer be manufacturing memory chips for Huawei.
In light of all these events, it is clear that assembling smartphones will now be significantly more complicated for Huawei. No wonder the Chinese company has already announced a 78% production cut for next year.