Huawei makes key parts in front of 5G and foldable phone debut

TAIPEI – Huawei Technologies in China are storage components and are seeking to expand their supplier network to ensure that the largest launch of smartphones goes smoothly despite the unifying trade war between the United States and China.

The company is expected to uncover its new offerings – including a foldable, 5G ready-to-go handset – across the Mobile World Congress, the world's largest mobile networking industry, starting Monday in Barcelona.

Foldables and 5G are likely to be the main topics at MWC as Chinese companies such as Huawei, ZTE, Xiaomi and Oppo showcase their latest developments in these areas and aggressively expand footsteps abroad.

Huawei, the world's third largest smartphone maker at Apple's just behind Apple, is expected to unveil its latest premium P30 handset on Sunday, as well as its first experimental smartphone with both 5G functionality and a collapsible organic LED display in a challenge to market leader Samsung El ectronics. .

While many other smartphone manufacturers are reportedly scaling back orders in the midst of a general downturn in the industry, Huawei looks the opposite. The camera lenses Sunny Optical and Largan Precision have seen that orders from Huawei increase 30% per year in the quarter, sources told the Nikkei Asian Review. The smartphone manufacturer has gradually incorporated more advanced camera features into their new phones.

Novatek, the world's largest provider of video driver integrated circuits, Chunghwa Precision Test Tech, which provides core processor testing services, and fingerprint chip designer Goodix have all seen The demand from Huawei picks up since the end of last year despite the overall diving in the smartphone market in 201[ads1]8 , Nikkei has also learned.

According to sources familiar with Huawei's plans, the company has also asked its purchasing team to explore more potential suppliers than in recent years.

"In the past, Huawei only worked with the top vendors Apple also uses, but now it's more open to qualifying multiple vendors to give some buffers and options if one day was banned from using American-made components, a source said. acquainted with Huaiwe's internal strategy.

In January, lawmakers in Washington introduced a bill aimed at a ban on chip exports to Chinese companies violating US sanctions and export control rules, citing Huawei and ZTE by name. Tighten control of the export of advanced technology to China, including microprocessors and artificial intelligence.

Hon Hai Precision Industry, better known as Foxconn, is also keen to bring together Chinese technology giant cell phones as well as its networking equipment. Partly compensate for the lack of iPhone demand Sources familiar with the situation slander te Nikkei

2019 may be a landmark year for Huawei, as many market watchers predict that it will come over for the first time as Apple's second largest smartphone maker.

Huawei is also planning to demonstrate its latest 5G networking solutions at the event, which is priced at an average of 30% under the smaller competitors, Ericsson and Nokia. Huawei is the top manufacturer of telecom equipment, accounting for about 28% of the global market last year, but has faced a concerted effort by the United States to shut down its technology from Western and other markets. The company sees MWC as a chance to engage with global operators and potentially counteract this campaign.

"We have already secured 30 commercial contracts, 18 of them in Europe," said Yang Chaobin, president of the Huawei 5G product line, at a media briefing in front of the conference.

5G wireless communication standard promises faster data transmission with low latency, lanes Way for Autonomous Driving, Mobile Life Streaming, Remote Operation and Other Innovations.

Despite the US pressure to avoid Huawei, allies such as the UK and Germany have suggested that they may not prohibit the Chinese company from their markets.

Huawei measures to protect its business from any fallout from the trading tensions with the United States and to exclude the supplier's fear.

The company invited leaders to visit their campus during the recent Chinese New Year's holiday to show them how their engineers worked around the clock to prepare for the new manufacturer ct launches, people familiar with the matter said. of leading electronic parts makers, and Huawei is eager to prove that they are committed to – and confident in – their new products, sources said.

"I was a little worried earlier when I found out that so many countries considered blocking Huawei at the request of the United States, one of the leaders said the trip." But my personal experience was that I met a group of talented engineers who showed incredible passion and trust in their work. "

Many other Chinese technology companies are also looking to drum up interest at MWC.

ZTE, China's No. 2 telecoms maker, is planning to return to the event, which will be the company's first international show Since it was forced to stop business for several months and transform its leadership after the US accused ZTE of violating sanctions against Iran and banning the use of any US technology.

ZTE, like Huawei, is planning to uncover a 5G smartphone in Barcelona – A 5G Summit is being held on Monday to promote its networking business, with chipmaker Qualcomm and Intel executives, as well as key operators such as Telenor of Norway and Telkomsel of Indonesia among the invited. However, the market share of the smartphone dropped from 2.3% in 2017 to 0.7% in 2018 among US bans, according to IDC data. Its share of the telecommunications equipment market is also almost halved to around 7% in 2018 a year ago.

"For the telecommunications sector, the Chinese government will help ZTE to at least secure some domestic market contracts … so we expect it to at least recover some stocks this year," says Remus Hsu, Market Intelligence analyst & Consulting Institute "Meanwhile, it will also target some regions like Southeast Asia that America has little to say about."

Xiaomi, the world's No. 4 smartphone maker, is renowned for its cheaper products and a wide range of connected devices, including wearables and smart speakers, the company made its MWC debut at the 2018 event and entered European markets such as France, the United States and Italy that year, in Barcelona it will reveal the international edition of its new Mi9 and a 5G edition of Mix 3. Co-founder and CEO Lei Jun said on a blog post this year that Europe will be his company's "main focus" as it expands globally.

In January, co-founder and President Lin Bin launched a v ideo online showing a prototype of a tree foldable, transforming it from one tablet size unit to a compact phone. The company has not announced an official start date for a collapsible handset.

Oppo, the world's fifth smartphone maker, will launch its look at MWC with a demonstration of the camera and 5G technology, but does not plan to announce any new devices. Oppo confirmed that it will introduce a 5G phone this year and has filed patents for the technology, but like Xiaomi, has not said then.

Huawei and Xiaomi were the fastest growing smartphone providers in the European market between October and December, with shipments increasing by 56% and 62% respectively, according to market consulting Canalys. "The US administration causes Chinese companies to invest in Europe over the US," said Canalys analyst Ben Stanton. "Those like Huawei and Xiaomi are giving price competition that has astounded their rivals as they use their size against the smaller mark in Europe." For the whole of 2018, Chinese suppliers saw as part of their share of the European market by 27%, says the research company.

Huawei did not respond to Nikkei's request for comment.

The Nikkei person writer Lauly Li in Taipei contributed to the report.