As we approach the end of the year, tech enthusiasts and industry analysts are buzzing with the news of a potential comeback from a familiar face – Huawei Technologies. This Chinese telecommunications giant’s potential reemergence in the 5G smartphone industry comes after a significant setback caused by a U.S. imposed ban on equipment sales.
According to various anonymous sources in tech research firms that specialize in China’s smartphone sector, Huawei is hoping to secure 5G chips domestically, leveraging its advancements in semiconductor design tools and partnering with Semiconductor Manufacturing International Co (SMIC) for chip production.
A Major Comeback or Just Wishful Thinking?
While this news generates waves in the technology world, both Huawei and SMIC have maintained their silence. Huawei has declined to comment, and SMIC has not responded to requests for comments. Should Huawei succeed in resurfacing in the 5G phone market, it would mark a significant victory for a company that has been in survival mode for nearly three years. To put things into perspective, Huawei’s consumer business revenue reached its peak in 2020 with 483 billion yuan ($67 billion), only to take a near 50% dive the following year.
The Rise, Fall, and Potential Rise Again of Huawei
Once a fierce competitor alongside tech behemoths like Apple and Samsung, Huawei began facing restrictions from the U.S. in 2019, which severely limited the company’s access to vital chipmaking tools. This setback crippled the production of their most advanced smartphone models.
The U.S. and European governments have labeled Huawei as a security risk, an accusation that the company has vehemently denied. Consequently, Huawei has been restrained to selling limited quantities of 5G smartphones using their existing chip stockpiles.
Huawei’s Current Market Position
Due to these restrictions, Huawei was reduced to selling previous-generation 4G handsets, which led to a decline in its global rankings last year. Despite hitting a sales low point, the company managed to claw back to capture a 10% market share in China in the first quarter of this year, as per reports by consultancy firm Canalys. As the tech world watches with bated breath, all eyes are on Huawei to see whether it can rise from the ashes and regain its position in the 5G smartphone market.
