Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Huawei is somehow becoming the number one phone maker thanks to the coronavirus

Huawei is somehow becoming the number one phone maker thanks to the coronavirus

Huawei logo seen at a technology conference.
Zoom in / Huawei logo at the World Congress of Smart City Expo in Barcelona in November 2019.

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Despite aggressive sanctions from the US government, Huawei has become the world̵

7;s number one smartphone maker, according to Canalys. 55.8 million shipments of the company’s smartphones in the second quarter of 2020 put it at the top of Canalys’ rankings for the quarter, marking the first time the company has moved Samsung to the forefront.

Huawei’s first place is not really because it beats US sanctions. Huawei’s sales are actually slightly lower than last year, but in the era of the coronavirus, sales fell only “slightly” is a big profit. Huawei’s sales fell 5 percent from the second quarter of last year, but Samsung’s sales fell 30 percent year-over-year. Samsung’s dramatic decline was enough to give Huawei first place at 55.8 million, compared to Samsung’s 53.7 million.

Canalys shows that smartphone sales have declined almost everywhere this year, with total shipments down 14 percent from the second quarter of 2019. The only company with growth is Apple, in # 3, which is a whopping 25 percent. Canalys credits the new iPhone SE for much of this success, saying it “[i]the new iPhone SE was critical during the quarter, accounting for about 28% of its total volume, while the iPhone 11 remained a strong bestseller with nearly 40%. “

Huawei’s view that the best place for smartphones in the face of US government export restrictions is a surprise, but the sanctions have an effect. Huawei has been falling as a scale in the global market, with at least a 26% drop in international sales over the past three quarters. Huawei has offset this loss to some extent with a higher market share in China. In the first quarter of 2019, Huawei’s shipments were divided almost evenly between China and the global market, at 51 and 49 percent, respectively. In the second quarter of 2020, the company sold 72 percent of its phones in China, according to Canalys, with only 28 percent of sales affecting the global market.

Huawei may be surviving COVID’s economy for now, but things will only get worse for the company in the future. Canalis warns that “[s]Treatment in China alone will not be enough to keep Huawei at the top once the global economy begins to recover. “Due to the export ban, Huawei is not allowed to supply Google’s Android applications on new models, which kills Huawei’s appeal outside China (where Google’s applications are not yet available).

Huawei cannot use American chips or technology in its products, but has managed to stay in China inside thanks to its internal HiSilicon division. Soon, however, Huawei will face the problem with the chip: TSMC, the world’s leading silicon foundry, said it would have to cut Huawei out of delivery after September 14. Huawei has obviously planned this and is stockpiling huge orders, but this campaign, like Huawei’s success in the last quarter, will not last forever.

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