Huawei Faces Production Disruptions for Next Foldable Phone Due to US Pressure

Delay in Securing Next-Gen Foldable Phone Supply
US-China Trade Dispute... Strengthening Anti-Huawei Front
TSMC and Other Component Suppliers Cut Off One After Another
Difficulty in Securing Mass Production Volume for Export Products

[Asia Economy Reporters Koo Chae-eun and Han Jin-joo] The U.S. government's anti-Huawei stance has disrupted the production of Huawei's next foldable phone. As it became impossible to install Google's Android operating system (OS), securing global export volumes became difficult, leading to uncertainty in Samsung Display's panel supply. On the other hand, Samsung Electronics' foldable phone sales prospects have brightened as Huawei's competition has diminished.

According to industry sources on the 2nd, Huawei planned to equip its next foldable phone with Samsung Display panels, but due to a shortage of volume, progress with Samsung Display has been sluggish. A display industry official said, "Since Huawei's next foldable phone can only reflect demand within China due to OS issues, the total production volume is expected to decrease significantly," adding, "From the panel supplier's perspective, the volume will inevitably be lower than originally planned, making the situation unfavorable."

The root cause lies in the expansion of the U.S.-led anti-Huawei front. On the 30th of last month, the U.S. Federal Communications Commission (FCC) designated Huawei and ZTE as companies that pose a national security threat. Long-time partner Taiwan's TSMC halted new orders, and the next foldable phone was banned from installing the Android OS, pushing Huawei into an isolated situation. Although Huawei is developing its own Linux-based mobile operating system called Harmony OS, the general analysis is that it is difficult to replace Android. The market expects Huawei's next foldable phone production volume to fall significantly short of initial plans.

Cooperation between Huawei and Samsung Display over the supply of next foldable phone panels has also hit a wall. An industry insider said, "As the expected panel supply volume falls far short, the panel supply plan itself is bound to face setbacks," and added, "From Huawei's standpoint, there is no suitable alternative for panel supply." This situation is also expected to further strengthen Samsung Electronics' foldable phone competitiveness. An industry official noted, "With the intensification of the U.S.-China trade conflict, the global supply chain landscape is changing," and predicted, "The anti-Huawei alliance could bring a windfall benefit to Samsung Electronics."

Meanwhile, according to Market Pulse, the monthly report by global market research firm Counterpoint, Samsung Electronics recorded a 17.2% share of the global mobile phone market in May, ranking first. The May mobile phone market shares were Samsung (17.2%), Huawei (17.1%), Apple (12%), Oppo (7%), Xiaomi (7%), Vivo (7%), and others (18%).

This content was produced with the assistance of AI translation services.