Honor, which was started as a sub-brand of Huawei, recently became an independent company after it was sold off to Zhixin New Information Technology Co. Ltd. Going forward, the company has some ambitious plans.
As per the report from Nikkei Asia, Honor has planned to produce about 100 million smartphone units and the company has already contacted its suppliers in the United States informing the same.
But it remains to be seen if the company manages to produce the required quantity of components as it will likely need to go through the approval process of the United States because of Huawei being put on Entity List.
The company is also working on strengthening its supply chain. Soon after the company became independent, it started talks with Qualcomm for chipsets and both of these companies are in advanced talks and could soon reach a deal. MediaTek is also evaluating legal options to supply chipsets to Honor.
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So far, most of the devices from Honor were powered by the company’s own Kirin chipsets. But that is not possible now as the recent sanctions on Huawei have made it impossible for Kirin to manufacture chipsets.
Whether Honor manages to achieve its goal of making 100 million units in 2021 will be dependent on its ability to procure components. On the other hand, Huawei is expecting to make 60 million units next year.
So, in total, both these companies plan to make 160 million units of smartphones, which is about 20 percent less than what Huawei managed to produce in 2019. Although Huawei was the leading smartphone company globally earlier this year, its market share is declining rapidly because of the sanctions.
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