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US-Banned Ex-Apple Smartphone Camera Maker Becomes Huawei Mate 60 Phone Contractor

Updated: Jan 8

In a surprising turn of events, Chinese smartphone-camera maker Ofilm Group, which was previously blacklisted by the US and removed from Apple's supply chain in 2020, has found a new opportunity as a contractor for Huawei Technologies.

Credits: Bloomberg

Ofilm, based in Shenzhen, is now the primary supplier of camera modules for Huawei's latest flagship smartphone series, the Mate 60, according to a report by local media Chinese Business Network.

Ofilm's founder and chairman, Cai Rongjun, expressed the company's resilience in the face of challenges. While Ofilm has not publicly confirmed its partnership with Huawei, it did announce in September that it had made technological advancements in high-end cameras and that its products, including telephoto, macro, and ultra-wide-angle lenses, had been adopted by major Chinese smartphone manufacturers.

Reports of Ofilm's contract with Huawei have had a significant impact on its stock performance, with shares surging nearly 70% since September 28. This comes as a welcome development for Ofilm, which suffered a substantial loss in market value after losing Apple as its biggest client. Despite being removed from the US Entity List in June 2022, the company has struggled to recover, reporting a loss of 5.18 billion yuan (US$708 million) last year.

Ofilm's story serves as an example of how geopolitical tensions between the US and China can profoundly affect a company's fortunes. Once hailed as an Apple supplier and experiencing rapid growth in China's stock market, Ofilm's status began to decline after being blacklisted by the US Department of Commerce in 2020. Apple subsequently removed Ofilm from its list of suppliers in 2021.

The contract with Huawei comes at a crucial time for Ofilm, providing much-needed business and an opportunity to regain stability. With Huawei's strong demand for the Mate 60 series, which features advanced processors despite US trade sanctions, the company has raised its smartphone shipment target for the second half of the year by 20%.

  • Ofilm, previously blacklisted by the US and dropped by Apple as a supplier, has become a contractor for Huawei's Mate 60 phone.

  • Ofilm is now the primary supplier of camera modules for Huawei's flagship smartphone series.

  • Reports of the contract have led to a significant increase in Ofilm's stock value.

Source: SCMP

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