Chinese consumers are eager to buy smartphones with high-end Kirin chips from Huawei, worrying that the company’s access to US will soon cut off its production of high-end .

The phone supplier of Huaqiangbei, the world’s largest electronic product market in the southern city of Shenzhen, said that in the past month, the price of new and old Huawei phones has been rising steadily, from about 400 yuan (about 4,400 rupees) to 500 yuan (about 500 yuan). rupee). 5,400). A seller stated that the Porsche Design model of Huawei’s flagship Mate 30 is priced at RMB 14,000 (approximately Rs 1,52,200), compared to RMB 10,000 (approximately Rs 1,08,740) in January. The price of this phone on the Taobao market is similar.

A manufacturer said that consumers are increasingly worried about the supply of components for new mobile phones.

The supplier said: “Huawei mobile phones are becoming more expensive, but this is the relationship supply and demand.” “If people like this brand, they will pay higher prices. Who knows how good the chips they will have in the future?”

Last year, the U.S. government took action to prevent most U.S. companies from doing business with Huawei, saying that the world’s largest manufacturer of mobile telecommunications equipment and smartphones will ultimately be responsible to the Chinese government. Huawei has repeatedly denied that it is a hidden danger to national security.

Last month, the United States further tightened restrictions to restrict its use of commercially available chips, prompting Taiwan Semiconductor Manufacturing Company (TSMC) to stop shipping chips to Huawei.

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Richard Yu, CEO of Huawei’s consumer business, subsequently stated that the company will stop production of Kirin chips on September 15 to measures taken by the United States to cut off its manufacturing unit HiSilicon.

HiSilicon relies on software from American companies such as Cadence or Synopsys to design its chips, and outsources production to TSMC, which uses American manufacturing equipment.

Wholesale traders in the market said that they were busy meeting the additional demand for online last month, and the price of high-end mobile phones rose every few hours. They are not sure how much supply the distributor has.

Huawei does not disclose inventory information. A spokesperson told Reuters that the company continues to operate on demand.

Will Wong, an analyst at consulting firm IDC, said that chip inventories are likely to continue into the first half of next year.

Wong said: “One option for making Kirin chips last longer is to reduce shipments for the rest of the year.”

Huawei said last week that it plans to launch its Harmony operating system on smartphones next year, in part to overcome the US restrictions on using Alphabet’s Android.

However, Canalys analyst Mo Jia said that if Huawei no longer has the chips needed to make high-end mobile phones, the launch of “Harmony” will only be a “symbolic innovation.”

© Thomson Reuters 2020

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