With Huawei’s New Chip, Qualcomm Could Lose $10.8 Billion

(CTN News) – After a brief break, Huawei has just unveiled its most recent flagship lineup, the Mate 60 series, which is based on the company’s own Kirin 9000S chip after using it in its previous models.

This means that Huawei is no longer relying on Qualcomm for chipsets, and this could result in Qualcomm losing billions of dollars in sales in the future as a result.

When we look at Huawei’s own Kirin silicon, we can clearly notice that the company is not going to back down regardless of the accursed US trade ban which prevents the company from receiving any American technology that is related to 5G.

In light of the Kirin 9000S, Huawei may finally be able to become competitive again on the market with the Kirin 9000S, even though the chipset will not be able to match the performance of the most powerful Snapdragon SoCs when it comes to efficiency and performance.

Huawei is still one of Qualcomm’s largest customers for its SoCs, despite the US trade ban, which is why it is going to be a huge setback for Qualcomm if the ban goes into effect, as Huawei was one of its biggest customers.

It is expected that Huawei will purchase 40-42 million units from Qualcomm in 2023, compared to 25 million units in 2022.

According to analyst Ming-Chi Kuo, Huawei plans to fully switch over to Kirin SoCs by 2024, which means Qualcomm will lose around 50 to 60 million shipments next year, which is a disturbing figure.

The Snapdragon 8 Gen 3 chip is Qualcomm’s next flagship chip that is expected to cost $180 per unit when it is released later this year.

Consequently, if Qualcomm were to lose 60 million Snapdragon 8 Gen 3 shipments, this would translate to a loss of a whopping $10.8 billion for the company.

The Chinese company Huawei has not revealed any plans to release Kirin SoCs to other Chinese phone makers. However, if it does, it is most likely that the Kirin SoCs will be cheaper than the Qualcomm Snapdragon 8 Gen 3, which is rumored to get a price hike this time around.

The Exynos 2400 is another competitor that Qualcomm needs to keep an eye on, as it is supposed to arrive in a few markets with the Galaxy S24 lineup by the end of this year.

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