The United States Sanctioned Zte And Its Own Company, Qualcomm, Followed By It? There Are Three Threats

ZTE  Corporation (ZTE, 0763.HK, 000063.SZ) was banned by the United States  for violating U.S. sanctions against Iran. U.S. Commerce Secretary  Wilbur Ross announced on April 16th that the next 7 years (until 2025) On the 13th of this month, U.S. companies will not sell components to ZTE. However, the U.S. ban on ZTE’s trepidation threatens its own chip maker Qualcomm to suffer?

Reuters  reported on the 18th that the U.S.-sanctioned sanctions imposed by ZTE  have caused an impact on its own Qualcomm. As a result, terror has  forced QUALCOMM to face three threats: (1) to lose important customers  (ZTE); and (2) to let Qualcomm Competitors benefit; (3) China fears retaliatory measures.

The  report pointed out that the semiconductors of China Telecom and  Qualcomm, which are carried on ZTE smartphones, accounted for a high  market share. According to Neil Shah, research director at Counterpoint  Research, Qualcomm’s market share is about half. Neil Shah said that ZTE’s annual global smartphone sales volume is  about 45 million units, which is equivalent to nearly US$500 million in  revenue, based on the average asking price of the chipsets it carries at  25 US dollars.

In addition, the Chinese government is planning to expand the market  share of Huawei's semiconductor technology for semiconductor production.  Therefore, as a countermeasure against US-China trade friction,  Qualcomm may become the target of China’s attacks.

Kanalys  pointed out that in recent years, ZTE’s smart phone sales have fallen  out of the top 10 in China, but in the US market, ZTE is ranked fourth  behind Apple, Samsung and LG. Dachang, the market share in 2017 reached 11.2%. According  to information published by ZTE on the official website, smart phones  sold in the United States use Qualcomm's chipsets and processors.