Huawei shipments set to drop due to lack of Kirin chip supply

Source: Global Times Published: 2020/8/7 21:15:37

Huawei showcases the Kirin 980 chip along with other devices at the South & Southeast Asia Commodity Expo and Investment Fair in Kunming, Southwest China's Yunnan Province in June, 2019. Photo: IC

Huawei's Kirin chips cannot be produced after September, and the company's chips are currently out of stock, a Huawei executive said on Friday.

Richard Yu Chengdong, chief executive of the company's consumer business group, said on Friday during a China Info100 summit that the Kirin series of chips will not be produced after September, and Huawei's Mate 40 will become an "out of print" mobile phone with high-end Kirin chips, media reports said.

"Our mobile phone business is having a hard time, as the supply of chips is difficult and Huawei is out of stock," said Yu. 

According to Yu, Huawei has been unable to produce its chips because of a second round of US sanctions this year and is now out of stock. 

"Had it not been for the US restrictions, Huawei would have surpassed Samsung in mobile phone shipments last year," Yu noted, adding that Huawei's full-year shipments will be less than the 240 million units it shipped in 2019 given the chip supply situation. 

Huawei for the first time surpassed Samsung to become the world's largest smartphone company in terms of shipments in the second quarter of 2020, according to data released by Canalys. With shipments of 55.8 million units, Huawei took the largest global market share of 19.6 percent, ahead of Samsung and Apple.

Global Times


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