Huawei's sales plummeted and it lost leadership in the mobile phone market

Technologies

By CAPosts 30 October, 2020 - 09:34am 87 views

Huawei is losing the leadership position that it had been holding in the mobile phone market: it is no longer the largest phone manufacturer in the world and now occupies second place. In the last quarter, the company shipped 51.7 million smartphones, representing a 23% year-on-year drop, according to a Canalys report published on Thursday.

For its part, the firm Counterpoint Research shows similar numbers: it said that the technology giant sent 50.9 million cell phones, that is, 24% less than in the same period last year. The market share of the Chinese company became 14%, while in the third quarter of 2019 it was 18%, according to Counterpoint.

Overall, in the third quarter, worldwide smartphone shipments reached 348 million units, which indicates a decrease of 1% year-on-year, but is a 22% increase over the second quarter, according to with the report from Canalys.

The first place, which in the second quarter belonged to Huawei, is now occupied by Samsung. The shipments of smartphones of the South Korean company reached 80.2 million, which implies a year-on-year increase of 2% .

The drop in Huawei sales responds to the sanctions it experienced in the hands of the government led by Donald Trump . The United States has been limiting the actions of Huawei, in the framework of a tough confrontation with China that has economic and political aspects. Huawei is the Trojan horse of the Chinese Communist Party (CCP) in the rest of the world for its 5G network and that is why the regime lobbies in favor of the technology company .

The United States imposed a series of limitations on it to Huawei that, apparently, the sales volume of the company is affected , at least this study seems to show if you look under this magnifying glass. Last year, Huawei was included in a list that prevented US companies from doing business with the Chinese giant.

among other things, implied that Huawei could no longer use Google Android licensed software on its smartphones. In fact, the latest cell phone models of the company no longer have Google's operating system. If one takes into account that more than 80% of users use Android, it is clear that this measure imposed by the United States government is not minor and that it had (and possibly will continue) to have its repercussions on the Chinese computer giant. Added to this is that, as a result of other regulatory adjustments imposed by Washington now, the Taiwanese company TSMC, which manufactures Huawei's smartphone chips, can no longer send those components to the company.

Just as these measures affected Huawei, there is another Chinese telephone company that is gaining relevance in the market. This is Xiaomi , which increased its sales. The company increased its shipments by 14.5 million units. While in Europe, Huawei's cell phone shipments fell by 25%, those of Xiaomi grew by 88% .

Xiaomi registered the sale of 47.1 million devices in the quarter ending in September, an increase of 45% y-o-y, according to Canalys. Thus, it became the third player in the smartphone market, surpassing Apple, which ranked fourth with the shipment of 43.2 million iPhones in the same quarter.

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