Core Insights - Huawei is increasing the proportion of domestic components in its high-end smartphones, with the 2024 model "Mate70Pro" featuring approximately 57% Chinese-made parts, and the 2025 model "Pura80Pro" maintaining the same percentage [1][3][4] - The estimated cost of components for the "Pura80Pro" is $380, which remains unchanged from the previous year [3] - The shift towards domestic sourcing is largely driven by U.S. export controls that began in 2019, which have restricted American companies from trading with Huawei [6] Component Cost Analysis - The analysis conducted with Fomalhaut Technology Solutions reveals the procurement ratios of components from various countries, showing a significant decrease in the share of parts sourced from Japan, the U.S., and South Korea, which collectively dropped by over 20 percentage points since 2023 [4] - The trend indicates a strengthening of China's semiconductor supply chain, particularly in CPU and memory chip production, as Huawei capitalizes on the opportunity to enhance domestic manufacturing capabilities [1][6] Market Context - The increase in domestic component usage reflects a broader industry shift towards self-sufficiency in semiconductor technology, particularly in the context of advanced applications like artificial intelligence [1]