Qualcomm blames Huawei for its business slowdown

Qualcomm is hurt by the US-China trade war and the company’s CEO seems quite unhappy with Huawei and blaming it for the negative quarterly outlook.

Huawei smartphone market moves strong with 8.3% year-over-year growth for Q2 2019: IDC

Qualcomm Chief Executive Steve Mollenkopf told Reuters, Huawei had stolen market share mainly from its domestic rivals such as Xiaomi, Vivo, and Oppo. All of these are major customers to Qualcomm.

“Huawei was very aggressive in terms of making sure they built their market share there because they couldn’t sell things internationally,” Mollenkopf said. “And the reaction of the (other Chinese phone makers) was, ‘Let’s go as fast as we can to 5G, because there’s a great opportunity there,’ even to the point of saying, ‘Let’s cancel 4G models.’”

According to Canalys, Huawei has taken a lead in China in Q2 2019 to achieve the highest market share and acquired 31% Year on Year growth rate by shipping 37.3 million units compared to 28.5 million units shipped during the same time period last year with a market share of 27.6.

Apart from this, Swan accepts that export ban on Huawei also has a howling effect on Qualcomm’s forecast.

Although, in an interview with Yahoo Finance, Huawei founder and CEO, Ren Zhengfei said the company will continue to purchase chips for Qualcomm if the US allows it. As a report shows that Huawei will also reduce Qualcomm’s chips from its smartphone manufactured in the second quarter to reduce reliance on US firms.