The most recent IHS Markit report shows that more and more HUAWEI smartphones models has been using HUAWEI’s own Kirin chip instead of relying on other chips manufacturers. This has reduces reliance of Qualcomm chip supply from 24% to 8.6%!
The report shows that 74.6% of Huawei’s smartphones delivered in the third quarter of last year used its Kirin series, an increase from 68.7% a year ago.
Gerrit Schneemann, senior analyst for smartphones at IHS Markit, said in a statement: “Samsung and Huawei are taking strategic steps to realign their smartphone product lines and supply chains, moving from third-party processor solutions to independent research and development alternatives . Each company has its own unique reasons for change. ”
IHS Markit said that the reason for the increase in Huawei ’s self-developed chip usage is that the company is expanding the use of its Kirin chips. Previously, the company’s Kirin chip was mainly used in flagship devices, but now it is also used in mid-range models too!
It also stated that Qualcomm’s share of Huawei’s shipments fell from 24% in the third quarter of 2018 to 8.6% in the third quarter of 2019. In contrast, MediaTek increased its share of Huawei mobile phones in the third quarter of last year to 16.7%, up from 7.3% in the same period in 2018.
In addition to Huawei, Samsung has also increased the use of its own chipset in its products to reduce dependence on third-party vendors.
IHS Markit said that in the third quarter of 2019, Samsung used its Exynos processor in about 80.4% of mid-range smartphones, up from 64.2% in 2018. In the entire smartphone product line, 75.4% of smartphones are equipped with Exynos processors, which is higher than 61.4% in the same period of 2018.