Covid-19 – Huawei says epidemic has no impact on production of 5G equipment

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Whatever the administration of the United States sanctions the Chinese firm, it remains the leader in the 5G market. Likewise, the coronavirus affects all the tech giants, with the exception of Huawei which would keep its deadlines without problem.

For several weeks now, the Covid-19 epidemic, which began in central China, not far from the city of Wuhan, has had multiple repercussions on industries using Chinese factories. Thus, as a precaution, dozens of factories have temporarily ceased all activity. Many players anticipate a sharp economic slowdown in early 2020, like Apple.

According to Yang Chaobin, president of the 5G product range at Huawei, reported by the agency Reuters, the coronavirus has had very little impact on the Chinese giant. According to his words, Huawei, which has its own factories, more easily controls the reopening schedule. These factories would have reopened long before those of other manufacturers. Likewise, he says that Huawei’s main local suppliers have resumed production of essential components for Huawei devices. For Mr. Chaobin, the supply of 5G equipment to customers should not be delayed. The company would also have three to six months of equipment stocks.

At the same time, another 5G business executive at Huawei, Ryan Ding, announced that the Shenzhen company still dominates the 5G contract market. According to data put forward by Mr. Ding, Huawei has signed 90 contracts worldwide. Behind, the Swedish Ericsson declares having concluded 81 contracts, the Finnish company Nokia closing the podium with 67 signed contracts. The Chinese firm therefore continues to sell its technology and equipment well, despite pressure and sanctions from the US government. For Huawei, these contracts have already resulted in the delivery of 600,000 antennas for 5G.

For Huawei, everything is going well in the 5G field, but the Chinese authorities seem more affected by the coronavirus. Since January 31, tenders for six major projects have been postponed due to the epidemic. Several cable and fiber optic suppliers with their facilities in Wuhan can no longer deliver their products. Also, the quarantine of several million people and the restrictions on movement between the different provinces prevent the delivery of equipment, even if the factories would still operate. China has made the development of 5G a national priority, but now the authorities have admitted that the Covid-19 will cause significant delay.

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