X

Huawei is aiming to double its smartphone sales in 2024

Featured image for Huawei is aiming to double its smartphone sales in 2024

Despite the threat of a further US crackdown looming large, Huawei has big plans for its smartphone business. The company is reportedly aiming to sell 60-70 million smartphones in 2024. The figure is double of its total sales last year, with no notable growth expected this year either.

Huawei sets a big smartphone shipment goal for 2024

Huawei has been under American trade restrictions since 2019. The Trump government cut its access to its US suppliers calling the company a national security risk because of its alleged ties with the Chinese military, which it has always denied. This came just when it was threatening to replace Samsung as the world’s largest smartphone vendor. Huawei was reduced to primarily a China-only firm, with no access to the latest technologies.

Advertisement
Advertisement

Thankfully, the country’s self-sufficient smartphone supply chain allowed it to continue operations. It worked with SMIC (Semiconductor Manufacturing International Co.) to manufacture 5G mobile processors based on a 7nm process node, the firm’s most advanced process. Huawei also sourced 4G chipsets from Qualcomm to continue making low-cost smartphones (Qualcomm has a US government license to supply 4G chips to Huawei).

However, there are fears that the US will further tighten its trade restrictions on the beleaguered Chinese company, potentially cutting off its access to US-made 4nm chips as well. The Biden administration may revoke the licenses. Despite these fears, Huawei is optimistic about its smartphone business. It has set a big shipment goal for 2024 and is already working to achieve the target. The firm has been reportedly stockpiling components since early this year.

Sources familiar with the matter told Nikkei Asia that Huawei has built a huge inventory of lenses, cameras, print circuit boards, and other parts to meet its smartphone sales target for 2024. It has also asked Qualcomm to supply its full-year chip order within June, so further restrictions from the US don’t block those orders. If everything goes to plan, and there are no further restrictions, Huawei may be on its way back to the global smartphone scene.

Huawei may eat Apple’s market in China

When the US put Huawei under its trade restrictions, the company was selling more than 240 million smartphones globally in a year. Unfortunately, it no longer has a global presence and only sold 30 million units last year. Its potential resurgence in China, meanwhile, may affect Apple’s market. The company’s Mate 60 series is already outselling the iPhone 15 lineup in the country. The stronger it gets, the bigger the threat to Apple.

“Huawei is aiming high in the next two years, and we expect them to move upward on the back of domestic demand cheering on their hometown hero,” said Bryan Ma, vice president of device research at IDC. However, Ma expressed concerns that the US may not allow the company to bounce back quickly. Time will tell whether Huawei will achieve its smartphone sales target for 2024.