Huawei’s phone segment “hits” at home in China

Since the Huawei ban was imposed about two years ago, the company’s smartphone business has been going downhill. Huawei does not deny the impact of the US ban on its smartphone business. In fact, one top Huawei executive admitted that the company was just trying to survive.

Huawei “takes a beating” from the US ban

According to reports from China, Huawei smartphones are largely unavailable in China. When a customer asked him where he could buy a Huawei smartphone, a Huawei authorized store in Beijing said: “It’s not just that our store is out of stock. If you go to the stores, it’s not just our store that’s out of stock. other stores in Beijing, or stores across the country, the situation is similar.”

According to the report, after visiting a number of Huawei authorized stores in Beijing districts and districts, the situation is indeed the case. There are basically only two or three models in stock, and some stores even have only one.

Huawei’s consumer business executive director Yu Chengdong said, “In less than two years, the United States has imposed four rounds of sanctions on Huawei. The business is in an extreme situation and cannot operate. Moveable. High-end products are mainly being acquired by Apple.”

At the same time, Yu Chengdong further explained that: “Huawei’s high-end mobile phone and tablet market share in China is currently held by Apple. For the mid-range and low-cost market share, Oppo, Vivo and Xiaomi are holds. Our global market share is split between Samsung, Apple and a number of other Chinese manufacturers.”

Besides, Huawei’s smartphone market share in the first quarter of 2021 in China only accounted for 16%, down from 30% over the same period last year and is no longer the market leader.

According to an expert of Counterpoint Research, the impact of US bans is the main reason for Huawei’s position to decline. The company is still supported in the home market, however, US semiconductor restrictions prevent it from importing chips from TSMC and its partners, so the smartphone production and delivery process is seriously affected.

Huawei’s “stumbling block” is an opportunity for rival companies. Vivo made the best use of this opportunity to take the lead with 24% market share, up from 17% year-on-year. Vivo’s success comes from a series of low-cost smartphones with strong configuration and 5G support. In addition, the company’s name was also enhanced in the eyes of the Chinese people when it launched the high-end Vivo X60 and shook hands with the famous Zeiss lens manufacturer.

Oppo follows closely behind Vivo with 23% market share. Counterpoint Research assesses that the company has benefited greatly from the demand for 5G smartphones in China, as well as successfully positioning the Reno series with impressive hardware and good prices.

Huawei currently ranks third with 16% market share but is closely followed by Xiaomi and only 1% behind. Apple ranked 5th with 13%, up from 9% in the first quarter of 2020 and is the only foreign company in the top 5 of this country. And TrendForce assesses the sanctions from the US government and the sale of the Honor sub-brand as the two main reasons for Huawei’s smartphone segment to decline.

“Even if the US ban is lifted in the future, it will be difficult for Huawei to regain market share because it has been left behind by rivals. They will have to compete with other companies, including a former subsidiary of Huawei. themselves,” said TrendForce.