Huawei has become a lifesaver for Qualcomm, and there are two major problems behind it. The global smartphone market has been sluggish, resulting in a hit to Qualcomm's main revenue**. In the high-end market, Qualcomm's share declined, mainly because rival MediaTek seized the low-end market, while Apple joined forces with MediaTek to squeeze the high-end market. In the face of these two pressures, Qualcomm's revenue has fallen sharply.
At this critical moment, Huawei appeared and became Qualcomm's savior. Huawei threw a large number of orders to Qualcomm, saving Qualcomm's performance. Why did Huawei become a lifesaver for Qualcomm?The reason is that in the context of the Sino-US war and chip blockade, Huawei urgently needs the stability of key components. As the world's top communication chip manufacturer, Qualcomm has naturally become the first choice for Huawei's mobile phone business. Although Qualcomm failed to obtain Huawei's 5G mobile phone chip supply qualification, it is still the largest supplier of Huawei's 4G chips. According to public data, Huawei's orders to Qualcomm increased by 70% in the first half of this year. It is Huawei's large-scale procurement that supports Qualcomm's performance. Therefore, Qualcomm made it clear that it will supply communication chips to Huawei for a long time.
Not only Qualcomm, but also the U.S. chip industry recognizes the importance of retaining the Chinese market and customers. CEOs of companies such as Intel and Nvidia recently called on the United States to relax export controls on Chinese high-tech companies such as Huawei. Because the Chinese market is vast and there is a huge demand, it is an indispensable part of American semiconductor companies. Despite the complex political environment between the two countries, there is a complex interdependence between Chinese and American high-tech companies. Huawei's procurement behavior objectively helped Qualcomm tide over the difficulties and also showed hope for the development of the technology industry.
It can be concluded that Huawei has become a lifesaver for Qualcomm, and in fact, both sides take what they want. At a time when both parties are facing difficulties, this cooperation is a win-win. The development of science and technology enterprises and industries needs to support each other and achieve win-win cooperation.
Back to the beginning of the article, how will the relationship between Qualcomm and Huawei develop?Is the fate of the tech industry in the hands of the companies themselves?Feel free to leave your insights in the comment section.