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Huawei stores key parts in front of the 5G debut and folding phone

TAIPEI – China's Huawei Technologies buys components and strives to expand its network of suppliers to ensure that the largest smartphone on the market runs smoothly despite the turbulent trade war between the US and China

Awaiting the company will present its new offers – including a foldable, 5G-ready phone – on the eve of the Mobile World Congress, the world's biggest mobile networking event, which begins in Barcelona on Monday.

Foldables and 5G are likely to be major MWC topics, with Chinese companies such as Huawei, ZTE, Xiaomi and Oppo demonstrating their latest developments in these areas and aggressively expanding their prints abroad. the latest premium P30 phone on Sunday, as well as its first experimental smartphone with both 5G capabilities and a foldable organic LED screen to challenge the market leader Samsung El

While many other smartphone manufacturers reported declining orders in a general downturn in the industry, Huawei seems to do exactly the opposite. Suppliers of Sunny Optical and Largan Precision have noticed orders from Huawei to grow 30% this year, sources from the Nikkei Asian Review reported. It is believed that the smartphone manufacturer incorporates in its new devices more advanced camera functions.

Novatek, Chunghwa Precision Test Tech, the world's largest provider of integrated display circuits, offers Goodwood's processor and processor testing services, and Huawei's demand has risen since late last year, despite the overall downturn in the market. smartphones in 201

8, Nikkei has also learned.

According to sources familiar with Huawei's plans, the company has also asked its procurement team to explore more potential suppliers than in recent years.

Earlier, Huawei only works with first-tier suppliers that Apple also uses but is now more open to qualifying more vendors to give them some buffers and alternatives if one day is banned from using American In January, lawmakers in Washington tabled a bill aimed at banning the export of chips to Chinese companies that violated US sanctions and export control rules, quoting Huawei and ZTE, according to a source familiar with Huawei's internal strategy

by name following the steps of the United States to tighten up control over the export of advanced technologies in China, including microprocessors and artificial intelligence

Hon Hai Precision Industry, also known as Foxconn, is also busy assembling China's mobile giant mobile phones and network equipment.

2019 may be a significant year for Huawei, as many market watchers predict that it will for the first time surpass Apple as the second-largest smartphone maker.

<img full = "https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fs3-ap-northeast-1.amazonaws.com%2Fpsh- ex-ftnikkei-3937bb4% 2Fimages% 2F3% 2F4% 2F7% 2F7% 2F19427743-1-eng-GB% 2F20190220-Apple-slips-Line.png? magnify lightbox__magnify "src =" https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fs3-ap-northeast-1.amazonaws.com%2Fpsh-ex- ftnikkei-3937bb4% 2Fimages% 2F_aliases% 2Farticleimage% 2F3% 2F4% 2F7% 2F7% 2F19427743-1-eng-GB% 2F20190220-Apple-slips-Line.png? source = narcms "onerror =" this.src = /bundles/app/images/placeholder.jpg?3970 '; this.alt =' Huawei also plans to demonstrate the latest 5G network solutions for the event, which are estimated on average by 30% below those of their smaller competitors, Ericsson and Nokia Huawei is the leading telecom manufacturer sion equipment such as last year, accounting for about 28% of the world market, but faces a concerted effort by the US to exclude the technology from Western and other markets. The company sees MWC as an opportunity to engage with global operators and potentially oppose this campaign.

"We have already secured 30 commercial contracts, 18 of them in Europe," said Ian Chabin, president of the Huawei 5G product line.

The 5G wireless communication standard promises faster data transfer with low latency, paving the way for autonomous driving, mobile data transmission, remote surgery and other innovations.

Despite US pressure to avoid Huawei, allies like the UK and Germany have indicated they can not ban the Chinese company from their markets.

At the same time, Huawei takes steps to keep its operations from all the consequences of trade strain with the US and reassure the supplier

The company invited executives to visit his university at the last Chinese New Year celebration to show them how engineers work around the clock to get ready for new production starts, people who are familiar with the matter have said. Most of its supply chain is made up of leading electronics makers, and Huawei wants to prove it is committed to its new products and is confident in them, Nikkei sources said.

worried before when I discovered that so many countries are considering blocking Huawei at the request of the United States, "said one of the executives who took the tour." But my personal experience is that I met a group of talented engineers who showed incredible passion

Many Chinese technology companies also want to attract interest in MWC

ZTE, China's second-generation telecommunications equipment manufacturer, plans to return to the event, the first international show , since behes has been forced to discontinue operations for several months and to restructure its management after the US accused ZTE of violating sanctions against Iran and banning it from using US technology

ZTE, like Huawei, plans to launch a 5G smartphone in Barcelona. It will host a 5G summit on Monday to promote its networking business with leaders from Qualcomm and Intel chip makers as well as key operators such as Telenor of Norway and Telkomsel of Indonesia. The market share of smartphones, however, fell from 2.3% in 2017 to 0.7% in 2018 against a US ban, according to IDC. Its share in the telecommunication equipment market is also nearly halved to about 7% in 2018 from a year ago.

"For the telecommunications equipment sector, the Chinese government will help ZTE at least secure some domestic contracts … so we expect at least to regain some of the shares this year," said Remus Hsu, a Market Analyst Intelligence & Consulting Institute. "At the same time, it will also target some regions like Southeast Asia, for which America has almost nothing."

Xiaomi, the world's No. 4 smartphone maker, is known for its more affordable products and a wide range of connected devices, including carrying and intelligent d The company made its MWC debut at the event in 2018 and entered the European markets such as France, Britain and Italy this year, in Barcelona will unveil the international edition of its new Mi9 and 5G edition of its Mix 3. Co-Founder and Chief Executive Officer director Lei Jun said in a blog post this year that Europe will be the main focus of his company as it expands

In January, co-founder and president Lin Bin released an online video showing a prototype of a phone that can be folded into three, turn around it a device the size of a tablet in a compact phone. The company has not announced an official date for launching a folding phone.

Oppo, the world's 5th smartphone maker, will begin its MWC demonstration with its camera and 5G technology, but has not planned to announce new devices. Oppo has confirmed that it will present a 5G phone this year and has filed patents for the technology, but Xiaomi did not say when.

Huawei and Xiaomi were the fastest-growing smartphone manufacturers on the European market between October and December. sales are up 56% and 62% respectively, according to Canalys. "The US administration is driving Chinese companies to invest in Europe over the US," said Canalys analyst Ben Stanton. "Similar to Huawei and Xiaomi contribute to price competition that has stunned competitors because they use their size against the smaller brand in Europe." For all 2018, Chinese suppliers as a whole posted their share of the European market by 27%, the research company said.

Huawei did not respond to Nikkei's request for comments.

in Taipei contributed to the preparation of the report.

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