China’s Huawei poised to overcome US ban; returns to 5G phones

Huawei returns to 5G Smartphone Business

China’s Huawei Technologies is strategizing a return to the 5G smartphone industry after a U.S. ban ruined its consumer electronics business.
According to research firms, the company is signaling a comeback by the end of this year.
The firms who are into business with the electronics giant including Huawei suppliers, spoke on condition of anonymity because of confidentiality of the strategies with clients.
Huawei and Semiconductor Manufacturing International Co (SMIC) have both declined to comment respond to a request for comment.

Huawei needs to secure 5G chips domestically using advances in semiconductor design tools alongside chipmaking from Semiconductor Manufacturing International Co (SMIC), according to three third-party technology research firms covering China’s smartphone industry.
The company’s consumer business revenue soared at 483 billion yuan ($67 billion) in 2020, before tumbling by almost 50% a year later.
A return to the 5G phone market would mark a success for the company which has been struggling to survive for almost three years.

The Shenzhen-based technology giant once competed with Apple and Samsung until U.S. restrictions starting in 2019 cut its access to chipmaking tools, after U.S. and European governments labelled it a security risk.
Huawei fell from most global rankings last year with sales reaching a low point as a result of being trapped selling last generation 4G handsets, though recording 10% market share in China in the first quarter, according to consultancy Canalys.

The company shipped 240.6 million smartphones worldwide in 2019 before selling its Honor unit that accounted for nearly a fifth of shipments that year, according to Canalys,
However, U.S. restrictions cut Huawei off from Google’s Android operating system and the bundle of developer services, limiting Huawei handsets’ appeal outside of China.
China’s Securities Journal newspaper this month reported Huawei had raised its 2023 mobile shipment target from 30 million at the start of the year to 40 million units, without a clue of a return to 5G phones.