The leading supplier of network switching gear for phone companies, Huawei Technologies Ltd. is spending to reduce Huawei’s multibillion-dollar annual components bill and help insulate it against possible supply disruptions when US-Chinese relations are strained.
The handset, billed by Huawei as the first foldable fifth-generation smartphone, will be unveiled next month at the Mobile World Congress in Barecelona, the industry’s biggest annual event, stated Richard Yu, CEO of the company’s consumer unit.
The phone is based on Huawei’s own Kirin 980 chipset and Balong 5000 modem. The company says the Kirin 980, released in August, performs on a par with Qualcomm Inc.’s widely used Snapdragon 845.
Sales of Huawei smartphones and other consumer products rose more than 50% last year over 2017, showing “no influence” from Western security warnings, Yu told reporters. He said the consumer unit’s sales topped $52bn, or more than half of the $100bn in annual revenue the company has forecast. Huawei has yet to release 2018 results for the whole company.
“In this complicated political environment, we still maintain strong growth,” Yu stated.
Chinese companies are competing with Western tech suppliers in telecoms, solar power, electric cars, biotechnology and other fields. The communist party’s plans for state-led development of such industries, along with robotics and artificial intelligence, helped triggered a trade war with the US.
Both sides have raised tariffs on tens of billions on each other’s goods over American complaints that Beijing steals or pressures foreign companies to hand over technology. Washington also says that Chinese technology plans violate Beijing’s market-opening obligations.
Both sides have raised tariffs on tens of billions of dollars of each other’s goods in the dispute over American complaints Beijing steals or pressures foreign companies to hand over technology. Washington also says Chinese technology plans violate Beijing’s market-opening obligations.
Huawei surpassed Apple as the No. 2 global smartphone brand behind Samsung in mid-2018. It uses Qualcomm in its high-end fourth-generation smartphones and earlier Kirin versions in lower-end models.
The company was originally founded in 1987.