Huawei Mate60Pro hardware cost exposure: Made in China increased to 47%, the United States accounted for 2%!
According to the Nihon Keizai Shimbun, the total cost of components for the Huawei Mate 60 Pro is $422, of which 47% are made in China. Compared to Huawei's Mate 40 Pro, which was launched in the fall of 2020, the proportion of components made in China in the Mate 60 Pro has increased by 18 percentage points. The share of Korean companies increased from 31% to 36%, the share of American companies fell from 3% to 2%, and the share of Japanese companies fell from 19% to 1%.
The Huawei Mate 60 Pro is a high-profile smartphone, and the results of its component cost analysis show the growing strength of China's manufacturing industry in the smartphone field. According to the Nihon Keizai Shimbun, the total cost of parts for the Mate 60 Pro is $422, of which 47% are made in China. This figure is a significant improvement over the Mate 40 Pro, which was launched last year, and shows the rising position of Chinese component suppliers in Huawei's mobile phones. At the same time, the share of Korean companies has increased, while the share of the United States and Japan has decreased.
It should be noted that one of the most expensive components of the Mate 60 Pro, the OLED display, is supplied by the Chinese BOE Technology Group (BOE). BOE has successfully broken the monopoly of Korean companies in the smartphone display market by improving product quality, which marks the rise of Chinese companies in this field. However, despite BOE's progress in quality, there is still room for improvement in terms of supply capacity. With the resumption of Huawei's shipments, the enhancement of supply capacity will become an important issue.
In addition to the display, many of the chiplets in the Mate 60 Pro are also sourced from local Chinese suppliers. Huawei's self-developed Kirin 9000s processor is one of the core components of the Mate 60 Pro, along with power management chips, satellite communication chips, and RF chips, which are all key components that support the phone's functions. Chinese suppliers continue to improve product quality and performance, and have won the recognition of mobile phone brands such as Huawei.
However, the Mate 60 Pro doesn't rely entirely on Chinese-made components. Among them, LPDDR5 memory and NAND Flash flash memory are from Korean supplier SK hynix. It is worth noting that SK hynix has announced that it has severed business ties with Huawei, and it is unclear whether the SK hynix chips in the Mate 60 Pro were obtained through stockpiling or other means. This also highlights some of the challenges Huawei faces in terms of external supply chains.
Overall, the Mate 60 Pro's component cost analysis reflects the continuous development and progress of China's manufacturing industry in the smartphone sector, showing the strength of Chinese companies in terms of parts supply. However, the stability of the supply chain is still an issue that Huawei and other mobile phone brands need to pay attention to and solve. For Huawei, continuing to improve its independent R&D capabilities, especially in the chip field, will become an important strategy to deal with the instability of the external supply chain.
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