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Huawei Nobbled, No New Premium Smartphone This Year, Oppo Struggles To Take Their Spot

As Chinese phone brand Oppo struggles to get into the Australian premium smartphone market with their overpriced handsets, archrival Huawei has halted production of their next premium models due to a lack of quality US made components.

Huawei Technologies has told suppliers to delay production for its newest flagship smartphone and has trimmed orders for parts for the coming quarters, as it tries to assess the impact on its smartphone business due to the USA tightening export controls, sources said. Insiders are claiming that no new premium models will be launched in Australia this year.

While Oppo is spruiking their Find X2 Pro Huawei was hoping to be able to take on their archrival with their latest 5G Mate series which in the past has been
launched in the second half of the year.

The world’s second-largest smartphone maker, usually adopts its most advanced processor designs for the Mate line-up, using chips from its own HiSilicon semiconductor design unit.

But the Trump administration’s action in May further restricting Huawei’s access to U.S. technology has left the Chinese company uncertain about HiSilicon’s ability to supply parts such as mobile processors, communication chips and artificial intelligence accelerator chips.

Huawei has also been stopped from getting access to a full version of Google’s Android OS that allows Huawei to install Google apps such as Maps and email.

One supplier said his company had planned to begin making parts for Mate phones this month, as well as Huawei’s Honor brand of phones. But the executive said Huawei had already told the company to put production on hold until further notice.

“One of the reasons to pause is that Huawei is reviewing the inventory level of its HiSilicon mobile chips and is busy verifying other mobile platforms by Taiwanese chip designer MediaTek and US Manufacturer Qualcomm.

Other component suppliers also told Nikkei that Huawei has asked them to scale back up to 20% of orders for coming quarters, after it aggressively stocked up on components for the first half of 2020 in preparation for a U.S. clampdown.

Huawei’s Mate 30 series, introduced last year, was its first handset lacking support from Google Mobile Services — including some widely-used services such as Google Maps, Gmail, YouTube, and Google Play — after the U.S. added Huawei to the so-called entity list to restrict its access to American technology.

While losing Google’s support hit Huawei’s overseas smartphone sales, the company dominates the Chinese market, with a share of more than 41% in the January to March period, a sign that patriotic Chinese consumers are rallying behind a domestically made product.

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