By Greg Gao

(JW Insights) Oct 12 -- Chinese tech conglomerate Huawei has been stockpiling components, with a target to double its smartphone shipments next year, aiming for a range between 60 to 70 million units, according to a report by Nikkei Asia on October 10, citing industry insiders.

Huawei has been increasing its inventory of components such as lenses, cameras, printed circuit boards, and other parts to achieve its shipment goal. Huawei has also requested its sole 4G mobile chip supplier in the United States, Qualcomm, to deliver its entire year's orders by June, multiple supply chain sources and analysts have noted.

"Huawei is aiming high in the next two years, and we expect them to move upward on the back of domestic demand cheering on their hometown hero," Bryan Ma, vice president of device research at IDC, told Nikkei Asia. Ma said Huawei is likely to take some market share from Apple in China's premium phone segment. But political tensions could throw a wrench in its plans if the company suddenly cannot secure enough components, Ma added.

In recent years, Huawei's smartphone business has been significantly impacted by actions taken by the United States. According to IDC data, Huawei's smartphone shipments have dropped from a peak of 240.6 million units in 2019, when it ranked second in the world, to 30.5 million units last year, putting it in the 10th place.

The Huawei flagship Mate 60 Pro, which officially went on sale on August 29, may help the company break this trend. It has become a long-awaited hit in the consumer electronics market. Besides suppliers for innovative technologies such as Huawei's satellite communications powered by China’s Tiantong-1 communications satellite system and new generation of short-range wireless connection technology – NearLink, other companies providing optical components, display panels, structural components, and more are accelerating their production.

Huawei's Consumer BG CEO and Chairman of the Intelligent Automotive Solutions BU, Richard Yu, mentioned during the Huawei Autumn New Product Launch that he is delighted that products from the "Pioneer Program" have been well-received and they are working diligently to meet the high demand. Huawei’s "Pioneer Program" includes smartphone models like the flagship Mate 60 Pro, Mate 60 Pro+, and the foldable screen Mate smartphone X5.