According to some estimates, Huawei Technologies, which has come under US sanctions, will be able to release no more than 190 million smartphones this year – 20% less than last year. It will have enough stocks of components for about six months of work, in the future, Huawei’s market share will be redistributed among other manufacturers. Japanese component suppliers have already felt the increase in orders from their side.
According to the Nikkei Asian Review, Apple plans to ship 10% more smartphones this year than it originally planned – 220 million devices. Against the background of a general market decline, which may reach 10%, such a desire may indicate the presence of prerequisites for a redistribution of market shares between players. Chinese companies Xiaomi and Oppo, which are content with the fourth and fifth places in the world market, respectively, expect to release one and a half times more smartphones next year than this year – up to 200 million devices each.
Japanese component suppliers have already faced an increase in orders from Chinese smartphone makers in the four weeks since the new phase of US sanctions against Huawei took effect. Some Japanese component makers have even doubled their production plans for 2021. Japan Display reports that demand is far greater than the company’s ability to produce LCD panels for smartphones.
Many Chinese companies fear that the US sanctions will extend not only to Huawei, and therefore are asking Japanese suppliers to arrange the supply of components that do not use American technology and equipment. At least in the automotive segment, Renesas Electronics already has such a Chinese client. Large companies such as Sony and Kioxia cannot adapt so quickly to the needs of customers, and some suppliers are convinced that the surge in demand will be short-lived; by the beginning of 2021, logistics will be optimized for new conditions.
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