Huawei’s current chip reserves will have no problem to complete B customers’ yields

On March 31, 2021, Huawei announced its annual results for 2020 and confirmed that the company has met its business expectations in the former year including for different business divisions.

According to the information, Huawei posted global sales revenue of 891.4 billion yuan on year an increase of 3.8%, net profit was 64.6 billion yuan, a year-on-year increase of 3.2% operating cash flow was 35.2 billion yuan.

On the occasion, Huawei Vice Chairman and Rotating Chairman (at that time) Hu Houkun said that in terms of chips, Huawei had previously made some reserves to meet the needs of To B customers. All of these will improve global chip supply depend on the repair of the global semiconductor supply chain.

Hu said that due to the unclear supply situation, the future of the mobile phone business is uncertain, but the planned flagship models will be launched as scheduled. In the next few years, Huawei will continue to main its leading position in the smartphone industry.

“Huawei’s future consumer business must be consumer-centric and experience-centric. Huawei’s consumer strategy has been implemented for several years. The decline in mobile phones last year and the growth in sales of other hardware have strengthened our strategy. In the future, mobile phones are only one part of consumer business but not all.” said Huawei.

The Huawei official also explained that the supply chain on which multinational companies like Huawei are highly dependent and has been destroyed by political motives. However, from an industrial perspective, the upstream and downstream of the supply chain will make everyone victim and no one will win out of these situations.

As far as Huawei is concerned, part of the business decline last year was directly affected by the political attacks on its supply chain but it’s also an attack on its supplier who gets a big share of income from the Chinese tech giant.