Huawei will return to smartphone ‘throne’ despite restrictive sanctions, says President Guo Ping

The president of Huawei Technologies said that while US sanctions have stifled its smartphone business, it will not give up and plans to return to the industry’s “throne”.

In 2019, former US President Donald Trump accused Huawei of being a threat to national security, placed it on an export blacklist and prevented it from accessing critical US-sourced technology, thus affecting its ability of designing their own chips and supplying components from outside vendors.

“Everyone knows that phone chips need advanced technology in a small size with low power consumption. Huawei can design it, but no one can help us do it: we are stuck,” said the president of Huawei, Guo Ping, quoted in a transcript of a recent question and answer session with the team seen by Reuters.

Guo added, however, that the problems are solvable.

“Huawei will continue to exist in the field of mobile phones and with continued advances in chip production, the smartphone throne will eventually return,” he said.

Huawei, which was once the world’s largest smartphone vendor for a brief period, dropped out of China’s top five sellers last quarter for the first time in more than seven years, according to research firm Canalys.

In November, Huawei sold its low-cost smartphone brand Honor – a move aimed at keeping the business alive.

Huawei’s revenue fell 29 percent in the first half of this year, the biggest drop in its history, with revenue for its consumer business group, which includes smartphones, falling 47 percent to CNY 135.7 billion (about INR 1,55,550 crores).

© Thomson Reuters 2021


.

Leave a Comment