Market research firm Strategy Analytics predicts that Huawei, the world’s second largest smartphone vendor, will see its global shipments decrease by 24% in 2019 and another 23% in 2020. The report justifies this estimation by saying the Trump administration’s actions make it difficult for the Chinese tech giant to utilize US hardware and software, especially Google Play.
Before Huawei and its affiliates were added to the US Commerce Department’s Entity List, banning the Chinese corporation from buying from US suppliers without approvals from the Bureau of Industry and Security, Huawei shipped 59.1 million smartphones worldwide in the first quarter of 2019, up by 59.1% year-on-year. This increase meant Huawei held 17.9% in global market share, overtaking Apple and trailing behind only Samsung. In 2018, Huawei shipped 205.8 million units globally, following Samsung and Apple.
This year, Huawei will most likely see the steepest drops in shipments in Western Europe, while its home market China will be the least affected by the latest developments,Strategy Analytics said on Wednesday. Huawei is reportedly in talks with Aptoide, a Portugal-based app marketplace for Android devices, to provide a replacement for Google Play. In addition, Huawei has also developed in-house operating systems as alternatives to Android.
However, in the mass market, Huawei may lose buyers to Samsung, Apple, Xiaomi, Oppo, and Vivo as its handsets will lack Google services, and the software substitutes will need time to stabilize in performance, according to Strategy Analytics.
Shui Qian, an analyst with Strategy Analytics, said her firm believes that Huawei will prevail despite mounting headwinds. She added that the US ban will force Huawei to speed up research and development to shake off its reliance on US suppliers.
Contact the writer at jingli@kr-asia.com
