Experienced Analyst Ming-Chi Kuo painted a very pessimistic picture in his latest report on Huawei. Expressing that Huawei may be in a very difficult situation as of September 15, Kuo emphasizes two different scenarios. According to Kuo, the worst danger for Huawei is that the company has to pull out of the market.
Chinese technology maker Huawei has been trying to cope with US government sanctions for a while. The company has become almost inactive after the Donald Trump administration’s decision to embargo, especially in the smartphone market. It was even mentioned in the last statements made by the company that Kirin processors will no longer be produced. The latest news draws a pessimistic picture for Huawei.
Analyst Ming-Chi Kuo, previously the subject of our news with his statements about Apple, made striking statements about the Chinese technology manufacturer Huawei in a report he prepared today. The experienced analyst, who focuses on two different scenarios, says that Huawei’s place in the smartphone industry is in trouble. In fact, according to Kuo’s expectations, the company may even have to withdraw a smartphone.
Will Huawei pull out of the smartphone industry?
To be honest, Huawei survived 2020 despite everything. Because the company has managed to stay at the top of the industry despite the US administration’s trade ban implementations. Moreover, the coronavirus epidemic, which has plagued the whole world, did not affect Huawei’s place in the industry. But it looks like Huawei has run out of zero. According to Kuo, September 15 will be the date when things started worsening for Huawei, regardless of whether Huawei is able to supply parts or not.
In the meantime, it is necessary to open a separate bracket why Kuo clearly emphasizes the date of September 15. The US administration recently added other manufacturers with which Huawei cooperated with the ban list. This led to Huawei being unable to do business with companies from which it supplies parts. As such, Huawei had to cross the road with important suppliers, especially MediaTek. MediaTek recently announced that it has applied for a license to the US administration in order to sell parts to Huawei. However, this license application has not been approved for now.
Two different scenarios for Huawei
Kuo draws two different scenarios for Huawei in the report published today. One of these scenarios is that Huawei’s market share in the smartphone industry will base itself. Kuo calls this an “optimistic picture”. The worse scenario facing Huawei, according to Kuo, is that the company has to pull out of the smartphone market altogether. If the second scenario takes place, the smartphones produced by Huawei may become history soon after.
Both scenarios awaiting Huawei will delight the company’s competitors
Experienced Analyst Ming-Chi Kuo’s report released today will please other technology manufacturers such as Apple, Samsung, Xiaomi, Vivo and OPPO. Because the withdrawal of such an important playmaker from the market where there is serious competition will provide important opportunities for Huawei’s competitors. However, for now, there is no statement from any technology manufacturer regarding this report.