Huawei Moves Towards 100% Domestic Smartphone Production

Huawei Moves Towards 100% Domestic Smartphone Production

Huawei's latest flagship, the Pura 70 series, has achieved a major milestone by incorporating over 90% of its components from Chinese suppliers, except for the primary camera in the highest-end model. This move represents a substantial shift towards greater self-sufficiency in Huawei's smartphone production.

Chinese Smartphone Manufacturing Progress with Huawei Pura 70

Analyses conducted by the Japanese research firm Fomalhaut Techno Solutions during teardowns have unveiled that key components for most models in the Pura 70 series are now being provided by Chinese companies such as OFilm, Lens Technology, Goertek, Csun, Sunny Optical, BOE, and Crystal-Optech. These components include processors, displays, chassis, batteries, and more.

Advancements and Challenges Ahead

The top-tier Pura 70 Ultra model continues to rely on foreign technology for its most advanced processor (Kirin 9010) and main camera due to current limitations in wafer fabrication. However, with ongoing progress in chip manufacturing and camera innovations, achieving complete self-sufficiency in this regard seems plausible in the near future.

Market Impact and Future Outlook

Both Honor and Huawei have garnered significant popularity in the Chinese market, clinching the leading position in smartphone market share, as per IDC's Q1 2024 report. The soaring demand for the Pura 70 series has resulted in stock shortages across major channels and subsequent price hikes in the secondary market.

Forecasts within the industry anticipate a robust performance from Huawei this year, with potential smartphone shipments hitting 50 million units. The Pura 70 model is anticipated to play a substantial role in propelling this success, with sales projections exceeding tens of millions.

The Pura 70 series symbolizes a noteworthy stride towards complete domestic production for Huawei, demonstrating the increasing capability of Chinese suppliers to furnish vital smartphone components while relying on only a few high-end imported elements.

This evolving trend hints at a future where the entire smartphone manufacturing process within China could be fully nationalized, potentially influencing the global smartphone supply chain and reshaping the industry landscape.

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