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Huawei may soon be drastically cutting back on smartphones. But what in return?

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When things go badly, new human qualities emerge. On the one hand, there are those who give up and just go with the flow, and there are those who begin to actively resist the situation and try to change something. This applies not only to people, but also to companies. In the end, they also have people in their leadership and make decisions that should help their company become a better company. Amid the crisis and ongoing sanctions pressure, Huawei is finding the strength, reserves and ingenuity to adjust and make its future brighter. So it happened this time, when the manufacturer was deprived of its processors, but left a small loophole and it was the telecommunications giant that took advantage of it.

Huawei can still surprise us. She has chances.

Sanctions against Huawei

The United States recently once again tightened sanctions against Huawei and its subsidiaries. In case you missed this news, this time companies have banned the use of processors and other chips for smartphones that were made using patents owned by the United States or American companies. As a result, Huawei was effectively banned from using its Kirin processors, which it made for it. subsidiary of HiSilicon and which were the hallmark of the company’s devices. While producing its chips, Huawei could not buy a ready-made universal solution, like others, but optimize the hardware as it is convenient for itself.

In addition to its own developments, the company cannot use many others. For example, Snapdragon is closed for it by default. However, Qualcomm is working to start trading with Huawei again. While everything is not clear and time will tell what will happen with chips for smartphones, the company may slightly change the main focus of its business.

A new FT report claims that despite the sanctions, the Chinese giant still has access to US chipsets for the cloud business, and thus the company will now shift the focus of its activities and production in this direction.

Huawei has some other tricks up its sleeve that it can take advantage of.

Huawei cloud technology

In fact, few people know, but Huawei has its own business for the production of cloud computing solutions. As part of this business, the company sells computing power and storage solutions to its partners. In addition, artificial intelligence technologies are used in the production of such solutions. In addition to the fact that few people know about the existence of such a unit, even fewer people know that it is growing. At the same time, growth, as noted in the FT report, is very rapid.

Huawei business, cloud-relatedso large that the company even compares it to the smartphone and telecommunications equipment business. And these areas, for a minute, bring Huawei the lion’s share of revenue. In addition, it is said that the Chinese government will increasingly support the company by giving it contracts to deploy cloud sharing systems.

It will not be long before the full ban on Huawei’s work with the largest chip manufacturer TSMC comes into force. According to the restrictions imposed by the Donald Trump administration on Huawei, the supply of chips should completely stop from September 15 this year. Before that, the company still has the opportunity to receive previously ordered chips on old terms. This will allow you to have a small margin to support activities. Including this will allow the release of Huawei Mate 40, as planned, on the processor Kirin 1000 (or Kirin 1020 is the second name that appears in rumors and leaks).

It is not easy to be between two states that have started a confrontation.

Huawei processors

As you can see, Huawei is not one of those who just take and give up. In this regard, we can conclude that rumors about their own production may not be meaningless. According to them, the company is preparing to soon announce that it will produce chips on its own without using American technologies.

If this does happen, Huawei will not only secure a future for itself, but will also revolutionize the smartphone world. It is too large for its transition to an autonomous existence not to affect all market players. Of course, starting your own production costs a lot of money, but Firstly, Huawei has enough of them, and Secondlywhen the salvation of the company is at stake, there is nothing to think about. Even if the rescue is limited to the mobile unit only, it still makes sense.

Huawei is already actively “pulling” its app store, developing its operating system, and if it also starts to produce hardware, it will be just an ideal option for her and a nightmare for others. It is too expensive for small manufacturers to make their own components, so it is easier to buy them, and given Huawei needs, production will definitely be profitable. This will lead to lower prices and possibly more stability. And Huawei will not depend on anyone at all, and then it will simply not care about all the sanctions. Wow, what an interesting confrontation awaits us!

 

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