Honor, which started as a sub-brand of Huawei, recently became an independent company after being sold to Zhixin New Information Technology Co., Ltd. Looking ahead, the company has some ambitious plans.
According to a report from Nikkei Asia, Honor plans to produce about 100 million smartphones. The company has contacted suppliers in the United States and notified the company.
However, it remains to be seen whether the company manages to produce the required number of components, as Huawei may need to go through the US approval process due to its inclusion on the entity list.
The company is also committed to strengthening its supply chain. Soon after the company became independent, it began negotiations with Qualcomm on chipsets. Both companies are in advanced negotiations and may soon reach a deal. MediaTek is also evaluating legal options for supplying Honor with chipsets.
So far, most of Honor’s devices are supported by the company’s own Kirin chipset. But this is impossible because the recent sanctions against Huawei have prevented Kirin from producing chipsets.
Whether Honor can achieve its goal of reaching 100 million vehicles in 2021 will depend on its ability to purchase parts. On the other hand, Huawei expects to produce 60 million units next year.
Therefore, the two companies plan to produce 160 million smartphones in total, which is about 20% lower than the phones Huawei managed to produce in 2019.
Although Huawei was the world’s leading smartphone company earlier this year, its market share is rapidly declining. Because of sanctions.