According to overseas media reports, Micron Technology Company has partially resumed supply to Huawei.
According to the US " Wall Street Journal " report, Micron Technology , which had previously stopped shipping to Huawei, has partially resumed supply. Of course, the relevant person in charge also stated that these shipments do not conflict with the export ban.
It is worth mentioning that not long ago, Taiwan's Juheng.com also reported Micron Technology 's financial performance in the third quarter of fiscal year 2019, saying that its performance this quarter was strong. Among them, Huawei accounted for 13% of Micron's revenue in the first six months of fiscal year 2019, which is worth pondering.
In addition, the financial director of Micron Technology also said that the sales of DRAM and NAND products this quarter were frustrated by the Huawei ban. Without this ban, Micron would have reached the top of its financial report revenue forecast. To put it simply, and Micron Technology cannot be "full" without Huawei. If someone hadn't come out to interfere, everyone would have "made a fortune" long ago.
In fact, if Micron hadn’t worked so hard this time, it would have been a serious question whether the financial report performance would have passed this time!
In order to save Huawei, Micron has gone to great lengths
According to data from Bloomberg , Huawei is one of Micron’s largest customers.
Moreover, since last year, the memory market has continued to decline, which the industry has foreseen. Therefore, despite the sharp year-on-year decline in revenue and profits in the third fiscal quarter, Micron's performance still exceeded Wall Street expectations.
Therefore, if Micron completely loses Huawei as a customer, then Micron will most likely suffer a heavier blow, and shareholders may become collectively furious. But in fact, Micron did not hesitate to "take risks" in order to win orders from Huawei.
According to Kevin Cassidy, an analyst at Stifel Nicolaus Co., an investment institution, "There is actually a loophole in the export ban. If the U.S. technology used in the chip does not reach 25%, it will not be subject to the ban." And the card Sidi believes that Micron took advantage of this loophole. In other words, Micron used this loophole to turn supplying to Huawei into a legal act, which is indeed admirable.
At the same time, Steven Fox, an analyst at market research company Cross Research, also said that if a company wants to exploit this vulnerability, it needs to have overseas subsidiaries and businesses. Micron may be the first company to publicly say it will continue to do some level of business with Huawei. Being able to express its determination to cooperate with Huawei in this context shows how much Micron attaches importance to Huawei.
It is also worth mentioning that on the same day that Micron announced the resumption of shipments to Huawei, the New York Times reported that Intel had also resumed some shipments to Huawei. However, Intel declined to comment. But the U.S. Semiconductor Industry Association, sponsored by Intel and Micron, pointed out that relevant U.S. departments have determined that some chips are not within the sales ban.
Some people may think that Huawei is "lucky" this time, but in fact it is these American companies that are lucky.
According to previous data from Bloomberg: the top ten U.S. manufacturers that earn the most revenue from Huawei are: Flex, Broadcom, Qualcomm , Seagate, Micron, Qorvo, Intel, Skyworks, Corning and ADI. Obviously, the losses suffered by these companies due to the "ban" against Huawei are not small. Micron was the first to stand up because it could not withstand the pressure. It was also because the industry environment was not very good and it was not willing to lose Huawei as its "financier father".
After all, the global market share of Huawei's products can already be described as "seeing many mountains at a glance".
How terrifying is the market share of Huawei products?
According to the analysis of many industry insiders, Micron's ability to resume supply is mostly due to the huge market share of Huawei products.
As early as the nova5 launch conference on June 20, Huawei announced that as of May 30, 2019, in just 149 days in 2019, Huawei's global mobile phone shipments had exceeded 100 million units.
According to data released by market research organization IDC, European smartphone shipments in Q1 2019 were 53.5 million units, a year-on-year decrease of 2.74%. Among them, the market share of , Samsung, , Apple and others has declined to a certain extent. However, Huawei bucked the trend and grew, with shipments of 13.5 million units, a year-on-year increase of 66.13%. Currently, Huawei already occupies a quarter of the global mobile phone market.
However, the terminal business is actually only one part of Huawei's many businesses, and its communications business occupies a larger market share.
At Huawei's "5G is ON" summit held on June 25, Ding Yun, Managing Director of Huawei and President of the Carrier Business Unit, announced Huawei's business progress in the 5G field. Ding Yun said that Huawei has obtained 50 5G commercial contracts in the global market, and has shipped more than 150,000 sets of 5G equipment. These contracts come from countries such as the United Kingdom, Finland , South Korea, and Switzerland, and two-thirds of them have been released worldwide. of 5G commercial networks are deployed by Huawei.
In addition to these countries, some places in the United States are also inseparable from Huawei's communication equipment support.
According to Taiwan's China Times Electronic News, about a dozen rural American telecom operators that rely on Huawei network equipment are discussing with Ericsson and Nokia plans to replace Huawei-related equipment. However, it is not easy to replace the original equipment. Whether it is , Nokia or Ericsson, their products are too expensive.
According to Roger Entner, an analyst at the American Layken Analysis Company, Huawei's prices are 30% to 50% lower than those of its competitors. In addition, Entner also pointed out that operators in rural areas are not very profitable. If they cannot afford the price of new mobile network equipment, these operators may have to shut down their mobile networks and eventually face the risk of bankruptcy.
It must be said that Huawei's ability to "kill all parties" in the operator market is no accident. The experience accumulated over many years has actually allowed its competitors to find no flaws. Over the years, Huawei has already established a solid market foundation by conquering the overseas operator market. At the same time, its "customer-centric" business philosophy has allowed many overseas operator customers to invisibly raise industry standards. Competitors such as Ericsson and Nokia cannot compare with Huawei in terms of products or services.
As the saying goes, "To defeat a tiger, you must be strong yourself." Although some paper tigers will break with a "poke", at least you must have the strength and courage to "poke" them.
Huawei’s dazzling performance in the 5G field stems from its strong R&D capabilities
As early as the Mobile World Congress, Huawei’s rotating chairman Hu Houkun disclosed that Huawei has 2,570 5G patents, accounting for 20% of the entire industry. Huawei's ability to achieve such results is actually inseparable from the support of strong research and development capabilities.
Some time ago, Huawei's chief legal officer Song Liuping said, "Huawei's development relies on long-term massive investment in R&D. Last year alone, Huawei's R&D investment reached US$15 billion, ranking fifth in the world. In the past ten years, The cumulative R&D investment is approximately US$73 billion.”
It is also reported that Huawei invested US$600 million in 5G research as early as 2009. In 2019, Huawei had more than 10,000 5G-related R&D personnel, and its entire R&D investment exceeded 10 billion yuan, not including the terminal level.
Huge investment in personnel and R&D expenses has created capital for Huawei to lead in 5G technology. The latest report from IPlytics, a German patent data company, shows that as of June 15, in the current global 5GSEP standard essential patent rankings, China's two major manufacturers Huawei and ZTE have entered the top three. Among them, the number of 5G SEP patents declared by Huawei As high as 2,160, it has already left other competitors far behind.
In fact, Huawei's R&D level has long been well-known in the industry, and on this road of R&D, there are few companies that insist on huge capital investments like Huawei from beginning to end.Data shows that Huawei insists on investing more than 10% of its annual revenue, and about 15% in recent years, in research and development.
"R&D is not a sprint, but a marathon. You must keep running when you are on the track." This must be the common aspiration of all Huawei people.
is written at the end
"There are no eternal friends, only eternal interests!" This sentence said by the British Prime Minister Palmerston in the 19th century has long become a wise saying. So whether it is Micron Technology or Intel , they chose to take the initiative to show their favor to Huawei, which once again confirmed this view to the world. But in the end, what I want to say is that Huawei may not be the first company to make American companies bow their heads, but it is definitely the most powerful and influential one. What do you think? Please leave a message in the comment area to discuss together!
