Huawei Mobile Phone Prices Rose Under Pressure

  • The prices of Huawei's new phones and second phones have risen steadily in the past month.
  • Some wholesalers said that since last month, their online orders have skyrocketed.
  • In addition to chips, Huawei's Android operating system was cut off.

After the US’ chip ban on Huawei took effect on September 15th, the supply of Kirin chips, used in Huawei’s mobile phones, has since ceased. Consumers are rushing to buy existing mobile phones because they are worried about the decline in chip quality in the future, pushing up the market price of mobile phones.

Huawei Mate 20 Pro

Reuters reported that a number of mobile phone sellers in Huaqiangbei, an important electronic product town in Shenzhen, Guangdong, said that the prices of Huawei’s new phones and second phones have risen steadily in the past month, with an increase of between 400 and 500 yuan.

A seller said that Huawei’s flagship Mate 30 Porsche design model sold for only 10,000 yuan in January this year, and the price has now risen to 14,000 yuan. The price on Taobao is also about the same.

Another seller, named Xiao, explained that the price increase reflects consumers’ concerns about the supply of Huawei’s chips in the future.

“Huawei phones have become more expensive, but this is the law of supply and demand.” He also pointed out that people who like the brand are naturally willing to pay higher prices. “Who knows how the quality of future chips will be?”

Some wholesalers said that since last month, their online orders have skyrocketed, and mobile phone prices have risen every few hours. They are anxious to process the increased orders, even if they do not know how much inventory is left upstream.

Huawei declined to provide inventory information. A company spokesperson told Reuters that they are still operating in response to demand.

Huawei Beset on all Sides

At the IFA conference on September 3 this year, Huawei did not release the Kirin 9000 chip as usual. According to media reports, Huawei’s consumer business CEO Yu Chengdong said that the Kirin 9000 chip on the Mate 40 to be released this year can only be produced until September 15.

He said that the Kirin 9000 chip may be the last generation of Kirin high-end chips because the United States cut off the key technology of Huawei’s chip company HiSilicon Group.

Huawei Mate 30 Porsche

It is reported that Taiwan Semiconductor Manufacturing Co., Ltd., which manufactures chips for Huawei, is producing around the clock, 24 hours a day, focusing on exporting all chips to Huawei before September 14. After that, it will no longer be able to do business with Huawei.

In addition to TSMC, MediaTek, Qualcomm, etc. have also been unable to supply chips to Huawei from the 15th, nor can they produce chips independently designed by Huawei.

Reuters quoted consulting firm IDC director Will Wong as estimated that Huawei’s chip inventory is only enough to keep the company through the first half of next year.

In addition to chips, Huawei phones originally used the Android system developed by Google. Since last year, due to the US ban, some phone models cannot follow Google for security updates.

In order to counter the US ban, Huawei announced last week that it plans to launch a cross-platform operating system, “Harmony,” next year.

However, Canalys analyst Mo Jia believes that if Huawei cannot obtain the chips required for high-end phones, the launch of Hongmeng is just a “symbolic innovation.”

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Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

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