Chinese tech giant Huawei has decided to launch a new range of smartphone that would be based on their own technology instead of taking its components from U.S technology, stepping up efforts to compete with Western industry leaders in the face of Washington’s warnings the company might be a security risk.
Huawei Technology Ltd the biggest global supplier of network switching gear for phone companies, is making a lot of efforts and investing on a bigger level to manufacture their own chip technology instead of buying it from the US. This would be a great cost-effective strategy and also free of disruption risk. This step could change the face of global technology area as the US is the leader in this area.
The new handset of Huawei will be launched next month as the first foldable fifth-generation smartphone at the industry’s biggest annual event, the Mobile World Congress in Barcelona, said Richard Yu, CEO of the company’s consumer unit.
The phone is based on Huawei’s Kirin 980 chipset and Balong 5000 modem instead of components from traditional suppliers such as U.S.-based Qualcomm Inc.
The sale and the demand of Huawei smartphone have increased to 50% last year despite the warnings from Western security. Yu told reporters. He said his unit’s sales topped $52 billion, or more than half the $100 billion in annual revenue the company has forecast for 2018. Huawei has yet to release 2018 financial results for the whole company.
“In this complicated political environment, we still maintain strong growth,” Yu told
Up till now, the company has been using the chip that was provided by Intel Corp. but now the Huawei has produced its own chip and it will use it to make their smartphones from now onwards. The company believes that their own product chip is more powerful and better than the one they were producing earlier.
Qualcomm has a vastly larger array of products and patents for smartphone chips but Huawei is catching up, said Xi Wang of IDC.
“Generally speaking, Huawei’s chips are equal to Qualcomm chips in performance,” said Wang. “Not only at the mid-level but at the high end, Huawei can compete with Qualcomm.”
Huawei is doing great in the technology market as its small Chinese competitors ZTE Corp., was nearly driven into bankruptcy last year after Washington cut off access to U.S. technology over its exports to Iran and North Korea. President Donald Trump restored access after ZTE paid a $1 billion fine and agreed to replace its executive team and install U.S.-chosen compliance officers.
This announcement on Wednesday has changed the face of the global technology market to a higher extent as the reliance on imported goods is reduced to a larger extent. Chinese companies are developing technology to compete with Western rivals.