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China’s Huawei forecasts smartphone growth despite Trump blacklisting

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BEIJING: Huawei Technologies expects smartphone shipments to grow 20% next year even if it’s blocked from the latest Google software, suggesting the Trump administration efforts to contain the company’s rise may not be working.

The world’s largest smartphone maker after Samsung Electronics can rely on its massive home market and in-house software to keep the division humming, said Will Zhang, president of corporate strategy. Sourcing the hardware for smartphone manufacturing wasn’t a problem because of the availability of global supply, he told Bloomberg News.

Huawei is approaching a critical juncture in its fight for survival, six months after Washington barred it from buying key US components and software without special licences. Those include Google’s Android operating system, semiconductor design tools from Synopsys Inc. and Cadence Design Systems Inc. and radio frequency chips made by Qorvo and Skyworks. That threatens to dent Huawei’s smartphone business, which ships more than twice as many devices as Apple Inc, while impeding its ability to make fifthgeneration networking gear.

“There are many ways for our US partners to find global solutions, rather than ship from a single USbased source,” Zhang said at Huawei’s Shenzhen headquarters.

Zhang said in the past Huawei set one target for smartphone shipments, but now because of increased uncertainty in the market it developed three different goals that include best and worst case scenarios. Under a moderate scenario, smartphone shipments could rise around 20% next year, he said.

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