After the U.S. Foreign Direct Product Rule came into effect, Huawei can no longer obtain chips externally, putting its smartphone business in danger. As a result, Huawei announced the decision to sell its smartphone brand Honor on November 17, 2020. This report looks at Honor's future development and Huawei's possible plans for its semiconductor arm Hisilicon and forecasts the outlook for the smartphone and mobile processor markets in 2021 and beyond.
List of Topics
- Background of U.S. Ban on Huawei
- Development of the smartphone market amid the ongoing Huawei ban, touching on key factors driving market shares and strategies adopted by leading players like New Honor Company and Apple
- Use Scenario Analysis to predict what New Honor Company and Apple would do and the possible outcomes to the global smartphone industry and its supply chain
- Development of the mobile processor market amid the ongoing Huawei ban, touching on key factors driving market shares
- Use Scenario Analysis to predict what Huawei would do if the ban relaxed or remains and the possible outcomes if Huawei spins off Hisilicon due to continued ban
Table of Contents
1. Background
2. Smartphone Market Development
2.1 Key Factors Driving Market Share Changes: Pricing Strategies of New Honor Company and Apple
2.1.1 New Honor Company Targets High-end Market Segment with Complete Product Lines
2.1.2 Apple Puts More Effort to Develop Low-priced Smartphones
2.2 If New Honor Company Focuses on Mid-range and Value-line Models to Compete with Xiaomi, Oppo, and Vivo
2.2.1 Impact on Global Smartphone Industry: Prices of Non-Samsung Android Phones Will Plunge
2.2.2 Impact on Smartphone Supply Chain: Orders for Components Will Increase but Profits May Decline
2.3 If Honor Company Focuses on High-end Models and Apple Increases Value-line Models
2.3.1 Impact on the Worldwide Smartphone Industry: Apple Will Strike Back and Secure More Share in China
2.3.2 Impact on Smartphone Supply Chain: Some Suppliers Will Benefit from Order Shifts but Assembly Vendors May be Affected by Apple’s Chinese Supply Chain
2.4 If New Honor Company and Apple Both Focus on High-end Models
2.4.1 Impact on the Global Smartphone Industry: Competition in the Industry Will Remain Intact
2.4.2 Impact on Smartphone Supply Chain: Suppliers Will Gain Orders from New Honor Company Instead and May Cut into the U.S. Supply Chain
3. Mobile Processor Market Development
3.1 Key Factors Driving Market Share Changes: Relaxation of Huawei Ban and Spin-off of Hisilicon if Huawei Ban Remains
3.1.1 Ban Relaxed: Huawei Will Use Third-party Chips in the Short Term
3.1.2 Ban Remains: Huawei Will Very Likely to Spin off Hisilicon and Affect the Mobile Processor Market Shares
3.2 If Huawei is Still Unable to Acquire Enough Volume of Chips in the Short Term Despite Ban Relaxation
3.2.2 Mobile Processor Manufacturers Will be in a Favorable Position in the Short Term With or Without Ban Relaxation
3.3 If Huawei Spins off its Business to Survive Due to Continued Ban
3.3.1 Solution #1: Hisilicon Becomes an Independent Chip Foundry Supported by the Chinese Government
3.3.2 Solution #2: Hisilicon Becomes a Chinese IT Brand's Subsidiary
3.3.3 Challenges to Future Development of Hisilicon
4. Perspective
Appendix
List of Companies
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AMD
- Apple
- ASE
- AWSC
- Broadcom
- BYD Company
- Career Technology
- Chipbond Technology
- Compeq
- FIH
- Flexium Interconnect
- Fujitsu
- Genius Electronic
- GIS
- Hisilicon
- Huawei
- Intel
- Inventec
- Kinsus Interconnect Technology
- KYEC
- Largan
- MediaTek
- New Honor Company
- Newmax
- Oppo
- Pegatron
- Qualcomm
- Samsung
- Sharp
- SMIC
- Spreadtrum Communications
- TSMC
- TXC
- Vivo
- WIN Semiconductors
- Wistron
- Xiaomi
- Zhen Ding Technology
- ZTE
Methodology
Primary research with a holistic, cross-domain approach
The exhaustive primary research methods are central to the value that the analyst delivers. A combination of questionnaires and on-site visits to the major manufacturers provides a first view of the latest data and trends. Information is subsequently validated by interviews with the manufacturers' suppliers and customers, covering a holistic industry value chain. This process is backed up by a cross-domain team-based approach, creating an interlaced network across numerous interrelated components and system-level devices to ensure statistical integrity and provide in-depth insight.
Complementing primary research is a running database and secondary research of industry and market information. Dedicated research into the macro-environmental trends shaping the ICT industry also allows the analyst to forecast future development trends and generate foresight perspectives. With more than 20 years of experience and endeavors in research, the methods and methodologies include:
Method
- Component supplier interviews
- System supplier interviews
- User interviews
- Channel interviews
- IPO interviews
- Focus groups
- Consumer surveys
- Production databases
- Financial data
- Custom databases
Methodology
- Technology forecasting and assessment
- Product assessment and selection
- Product life cycles
- Added value analysis
- Market trends
- Scenario analysis
- Competitor analysis
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