Chinese smartphone makers tipped to fill gap left by Note 7

With production of the Galaxy Note 7 halted over safety concerns, new business for some of Asia’s major electronics component suppliers could be driven by increased demand from leading Chinese smartphone brands.

Analysts said the decision by Samsung Electronics to scrap its premium model may enable Chinese rivals such as Huawei Technologies, Oppo Electronics, Vivo, and Xiaomi to ratchet up manufacturing of their own high-end smartphones.

The supply chain may also see a wider availability of advanced smartphone parts, such as displays based on active-matrix organic light emitting diode (Amoled) technology.

Beleaguered Samsung on Tuesday permanently halted all production of its Note 7 amid increased concerns about the device catching fire while charging. The episode has severely tarnished the Korean company’s global brand and potentially jeopardised its smartphone business.

Nomura research analyst Huang Leping said in a report on Thursday that the absence of the Galaxy Note 7 in the fourth quarter this year “will help resolve the supply shortage issue in key components,

such as Amoled panels, and help Chinese smartphone brands boost their flagship model sales”.

Huawei’s Honor Note 8, Lenovo Group’s Moto Z and ZTE’s Axon 7 are all high-end devices that use Amoled technology, which delivers a thinner display with brighter images and a power-saving feature.