Huawei’s self-sufficiency allowed it to circumvent the U.S. sanctions and launch the Mate 60 Pro with the Kirin 9000S, which is gaining immense traction in China. With reported shipments said to reach 20 million units this year, the flagship is apparently selling like hotcakes, all the while benefitting Apple’s supply chain.
Luxshare, a key member in Apple’s supply chain, is said to profit from increased Mate 60 Pro sales in China
Huawei procures the charging module from Luxshare Precision, a primary entity of Apple’s supply chain. Luxshare was reportedly said to be a backup to mass produce the iPhone 15 Pro and iPhone 15 Pro Max just in case Foxconn’s main assembling facility could not complete Apple’s intended quarterly target. Though it is not confirmed how much Luxshare will make from this new undertaking, it was able to free up its production line for a company whose rapid growth was seemingly ground to a halt thanks to trade sanctions placed by the United States.
The report from Economic Daily News also mentions Xinwei, another Huawei supply chain partner, and states that the company is currently operating at full capacity to provide the Mate 60 Pro’s antennas, wireless charging, EMI/EMC, high-precision connectors, and folding screen hinge components. However, benefitting the supply chain does not present any advantage for Apple, particularly in China.
Though Huawei continues to be limited to one region, the Mate 60 Pro’s rise in popularity and the Chinese firm’s determination to push its business with the sanctions in place means that there is a possibility that it can expand outside of China while also dominating this market. In a recent report, TrendForce outlined that 2024 will be a difficult year for Apple due to an increased number of challenges, with one of these threats being Huawei’s resurgence on its home turf.
Huawei’s comeback has also created potential problems for Qualcomm, as the use of Kirin 9000S and future SoCs can mean that the San Diego firm could lose out on 60 million orders in 2024, negatively impacting its financials next year. Adding another vendor helps the supply chain grow, but that is not advantageous for competitors like Apple.
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