Why does Huawei just not sell Kirin processors to domestic manufacturers?

Stakeholders: The bottom layer of a non-mobile phone business unit of Huawei.

Huawei attaches great importance to focus, and in terms of the interests of non-main businesses, restraint is extremely terrifying. Let's just say that my department is a business, doing some kind of service, in 4 years, dozens of people have done more than 100 million from scratch, the market demand is terrible, we have no one to do it, looking for the company to ask for resources. The company said that this money didn't care at all, don't dilute the main business, and it curbed our development.

The current situation is that in the face of orders delivered by customers, we try our best to make customers not look for us, and if we can't push it off, we will tell customers to negotiate the contract after half a year. Have you ever seen anyone doing this?

HiSilicon chips are similar, although some are also sold out, but they are not the main business, and the company does not care much about it, even if the ** chips account for 70% of the monitoring market, the company does not regard it as a key business. Specific to the mobile phone chip, there will also be competition, and the company simply does not make this money, which I think is very in line with the company's consistent logic.

Huawei is involved in a wide range of businesses, and many of its non-main businesses are unknown, but many of them have vigorous vitality, and if they are not controlled, the company will rapidly expand and lead to unpredictable risks. Even the current annual growth rate of more than 30% is the result of hard restraint.

It's good to be exclusive, otherwise ** will be pulled down.

Not all Huawei Kirin chips are developed by Huawei itself. The Kirin processor is based on the ARM architecture and is commissioned by TSMC for OEM production.

It is not necessary to know that the Kirin chip was purchased in a foreign country, and Huawei redesigned and modified some content in this framework, so strictly speaking, Huawei's Kirin chip is not independently developed by Huawei.

All of them are developed by Huawei itself, Huawei's technological development is very advanced, and their capabilities are also very strong.

And did not enter the smartphone market. In 2009, Huawei launched a K3 processor to test the waters of smartphones, which is also the first smartphone processor in China.

Why don't Huawei's Kirin chips be produced by themselves. 1: Strategic positioning, 2: It is extremely difficult to produce by yourself, 3: The input cost is too high.

Huawei's HiSilicon Kirin series mobile phone chips are based on a chip architecture licensed by Arm in the United Kingdom (which belongs to SoftBank of Japan), and are designed for secondary packaging, and then produced by TSMC in Taiwan.

Therefore, Huawei's chips are neither independently developed nor produced by itself.

It's not Huawei's, Kirin is a foreign chip, and VO mobile phones have also been used.

Design it yourself, and then TSMC will do it.

Qualcomm's architecture is also ARM, which is also produced by TSMC, including Apple chips, which are also produced by TSMC. According to the first floor, Qualcomm is not its own chip. Architecture and production are not the focus, the focus is on many steps such as circuit design.

Because Huawei's Kirin processor is unique to Huawei, it helps to improve Huawei's product strength. Moreover, Huawei only has the ability to design chips, but does not have the ability to manufacture chips, so it can only produce on behalf of other companies, and its production capacity is limited. In addition, if the Kirin chip is sold to other manufacturers, it will not only reduce Huawei's brand influence, but also affect Huawei's pricing strategy, which in turn will affect Huawei's revenue and profits.

After years of technological development, Huawei's HiSilicon Kirin is now on par with Qualcomm's Snapdragon, but now only Huawei mobile phones are equipped with HiSilicon Kirin chips, so in order to maintain the uniqueness of the brand, Huawei will not ** Kirin processors to other manufacturers. On the other hand, Huawei is also worried that after selling Kirin chips to other manufacturers, the market will be reduced and the market will be destroyed. It will be cheaper than the mobile phone released by Huawei, so as to seize Huawei's market, and the high-end line made by Huawei is likely to be ruined.

On top of that, Huawei's HiSilicon Kirin chips have become the main selling point of Huawei phones, which is something that other manufacturers don't have. <>

At the same time, since this is Huawei's self-developed chip, it has more advantages in Huawei's optimized mobile phones. Of course, if compared with Qualcomm, Huawei's Kirin is currently not as good as Qualcomm, but it is not much different, in terms of baseband and artificial intelligence chips, Huawei Kirin can also match Qualcomm. And Huawei itself can't make chips, it's TSMC foundry.

Because making chips is very complicated, there are not many in terms of production capacity, so these chips can only be used by Huawei itself. Huawei, as a relatively strong mobile phone brand company in China, must first have its own characteristics and advantages, Huawei also uses a lot of foreign technology, but in terms of processor, it is unique and unique to Huawei, so Huawei will not deal with Kirin**. <>

Because this is Huawei's self-developed Kirin processor, it is only used in Huawei's mobile phones, which is a manifestation of its own strength.

Because chips can't be handed over to other people, if you make it yourself, the output is limited, and you must give priority to supplying yourself.

The main reason is to consolidate their position, if other mobile phones are equipped with Kirin chips, then their own brand will not be competitive.

Although Huawei's Kirin chips are very powerful, he has not sold them to other domestic manufacturers. After all, if Huawei sells Kirin chips to other manufacturers, then Huawei mobile phones.

You can't sell it**. Kirin chips, like Apple's chips, are all designed to improve the product power of products. Our country has been mobile phone chips.

The development is very slow, and domestic chips have been used by MediaTek.

Qualcomm occupies. With the production of Kirin chips, he has also become Huawei's core asset and competitiveness, so Huawei has no reason to sell chips to other manufacturers. <>

In fact, Huawei only has the ability to design chips, but not the ability to produce chips, so Huawei's chip production capacity is relatively limited. All mobile phone manufacturers in the world, except for the three cores, can produce a complete mobile phone on their own, and other mobile phone manufacturers rely on assembly. In fact, for Huawei, chips are far from keeping up with Huawei's sales, so they are not enough, and they are unlikely to sell them to other businesses.

Huawei can only produce 200 million chips a year, which sounds like a lot of rebates, but it's actually not enough. <>

And if Huawei manufacturers sell chips to other manufacturers, Huawei's brand influence will also decline. After all, most people in the world buy Huawei mobile phones because of the Kirin chip they created. As the only self-created chip in China, this not only carries the expectations of many Chinese people, but also buys Huawei to support domestic technology.

If the chips are sold to other manufacturers, then Huawei will no longer be the only Huawei. <>

In addition, if the lead chips are sold to other manufacturers, it will be difficult for Huawei's mobile phones to be repriced. After all, with the self-created elite chips, the best sold by Huawei mobile phones has also risen. Just because Huawei mobile phones have Kirin chips, even though the configuration of Huawei mobile phones is not high, there are still consumers who are willing to buy Huawei mobile phones.

Therefore, Huawei's configuration itself is not as good as other manufacturers, so if you sell your own unique Kirin chip to other manufacturers, Huawei is likely to be even more untenable in the market.

Mainly because after selling to other manufacturers with good codes, Huawei has no advantage in doing anything, after all, less than 40% of the parts of Huawei mobile phone UFIDA are domestic parts.

Huawei's self-produced Kirin chips are very preferential. The consumer group in China is also very large, but this is also Huawei's independent property rights.

Because Huawei and other mobile phone manufacturers are in a competitive relationship, if you sell to them, then your competitiveness will be greatly reduced.

Domestic mobile phones have blossomed everywhere, and China's first-line smartphone manufacturers Huawei, OPPO, vivo, and Xiaomi are sweeping the world with overwhelming momentum. Some foreign media even pointed out that due to the menacing arrival of Chinese mobile phone manufacturers, the mobile phone component chain will face an unprecedented demand shortage. Since the rise of major domestic mobile phone manufacturers, they have often been troubled by the best manufacturers in chips, memory, screens and other hardware, and now most of the domestic mobile phones are restricted by Qualcomm.

The market for chips is not large. Although Qualcomm has accounted for 50%+ of the market share, 100 million chips were sold in 2018, and the chip revenue was about 17.3 billion US dollars. But from the perspective of profits, Qualcomm still lost money in 2018, and in the early years, Qualcomm's profits mainly came from the patent licensing business, and the profit margin of the chip business was very low, which can only be said to be a small profit.

Huawei sold more than 200 million mobile phones in 2018, about 20% of the share, and more than 50 billion US dollars, which shows that the mobile phone market is much larger than chips. In addition, Huawei's HiSilicon chip has a short development history, and it cannot be compared with Qualcomm MediaTek in terms of cost, so it is generally slightly higher in terms of ** and is not competitive. The domestic brand mobile phone Xiaomi and Meizu are swinging at the low-end level, the performance of the mobile phone is average, and it is relatively close to the people, so it is natural not to spend too much cost on the chip, and the first choice is Qualcomm or MediaTek.

This is because Huawei has a relatively good and open operational mind. Obviously, Huawei does not want to use its technology or capabilities in chips to affect the survival and development of other competitors.

Kirin is also very good, and the technology is also very mature at present, and it has developed little by little, not as early as Qualcomm, Qualcomm first seized the market.

Secondly, Qualcomm technology has a certain number of years, and the technology is very stable and mature, and then it is open to various countries, and there are Qualcomm CPUs from high to high

Because Huawei will only find out after testing it to be completely secure.

At present, Huawei's is still unstable, and it will be sold only after testing.

Because this processor is dedicated to Huawei.

Due to the menacing arrival of Chinese mobile phone manufacturers, the mobile phone component ** chain will face an unprecedented demand shortage.

Probably he wanted to develop his own research use.

Maybe after he develops himself, others can't ask for it.

The Kirin processor is so advanced, why does Huawei have no spirit of sharing and is unwilling to sell it to other domestic brands?

Obviously, he does not want to affect the survival and development of other friends with his own technology or ability in chips.

This is because Huawei's processors are classified inside.