Huawei's smartphone business is being overtaken

 Many people are familiar with the name "Huawei". It has been established for more than 30 years, but it has become the world's top technology and communications company. As the mobile phone business closest to consumers, it has also flourished. It surpassed Apple in the past two years and was second only to the world. One of Samsung, even in the third quarter of 2020, surpassed Samsung and won the world's number one mobile phone sales. #Huawei#

Ex Us President Trump

Huawei's rapid success, especially the global launch of 5G, aroused the coveting of the United States, which was followed by sanctions by the United States. Previously, Huawei’s goal was to surpass Samsung in 2020 and become the world’s largest mobile phone manufacturer. However, in May 2019, after Huawei was added to its “Entity List” by the US Department of Commerce, Huawei’s progress began to become difficult. The target seems to be near, and it seems to be farther and farther.

Affected by multiple sanctions by the United States, Huawei fell out of the top three in the latest global mobile phone sales list. Instead, domestically produced millet made a breakthrough and squeezed into the top three. It can be seen that the US sanctions have inhibited the growth of Huawei's mobile phone sales. Most importantly, it has cut off Huawei's ability to obtain key components of its equipment. The impact on overseas markets is particularly large, and its smartphone business is in trouble.


In this regard, the relevant person in charge of Huawei also said in an interview with the media: “Due to the unfair sanctions imposed on us by the United States, our mobile phone business revenue has declined.”

Although Huawei has not disclosed the specific losses of its mobile phone business unit last year, according to data from Gartner and Counterpoint, Huawei has lost its absolute advantage as a leader in the Chinese market, making it even more difficult to maintain the global market.

Mobile Phones

In recent years, Huawei has expanded its lineup of connected devices. Compared with 2019, sales of Huawei's other consumer electronics products (including laptops, tablets, and wearable devices) have increased by 65% ​​in 2020.

Despite the poor performance of the mobile phone business, by 2020, Huawei’s overall revenue will still increase to 891.4 billion, and Huawei’s reported net profit is (US$9.9 billion), which is the highest level ever.

But revenue only increased by 3.8%, and profits increased by 3.2%, which was far lower than the growth level of previous years.

Huawei LOgo

The data released by Huawei is still a bit embarrassing. It is obvious that Huawei’s growth rate in 2020 has slowed down. Huawei has also said that “2021 is for Huawei to survive.” Indeed, the current Huawei It is not easy to survive.

In order to survive, or to counterattack, Huawei has made many strategic adjustments and adopted a series of measures to support its business, including diversifying its supply chain. In addition, Huawei has also launched its own cheap brand glory.

Affected by the epidemic and under the background of continued downturn in overseas markets, Huawei's revenue in the domestic market has increased by 15.4%.

Chinese Mobile Markets 

Huawei continues to be suppressed by the United States. In particular, TSMC no longer OEMs its advanced Kirin chips for Huawei. For Huawei, it is "short of cores" and it is very tough. Mid-to-high-end flagship devices are facing the risk of "out of stock", and Huawei's mobile phone market is facing a gap. It has become a hot cake for other mobile phone manufacturers. In recent months, local rivals Oppo and Xiaomi seem to have "replaced" Huawei, becoming the largest domestic smartphone manufacturer and the world's most popular Chinese supplier, respectively.

There are still many uncertainties about the future of Huawei's smartphone business. Whether Huawei will "return" soon is actually difficult to predict. Varun Mishra, a mobile device and ecosystem analyst at Counterpoint Research, said that it will not be soon.

Us President Baden

Although the Trump administration is no longer there, the Biden administration does not seem to be “friendly” to Huawei. The FCC responded to Washington’s previous statement that Huawei poses a “threat” to its national security, although Huawei has repeatedly denied it. There is no trace of this statement, but all the signs indicate that the situation is not optimistic.

Huawei Company

It is too difficult to predict when the United States will lift the sanctions. Huawei does not expect it. Huawei has already started to be self-reliant, and Hongmeng operating system will soon be launched among ordinary users. Huawei’s smartphone business may be up and down for a period of time, but the editor still Always believe that Huawei will rise again, then Huawei will surely make everyone admire.

Next Post Previous Post
Comment Here
Add Your Comment
comment url

Donate Me