Huawei hard case: only sixth place behind Xiaomi and co.

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Jeff Horseman
Jeff Horseman
Jeff Horseman got into journalism because he liked to write and stunk at math. He grew up in Vermont and he honed his interviewing skills as a supermarket cashier by asking Bernie Sanders “Paper or plastic?” After graduating from Syracuse University in 1999, Jeff began his journalistic odyssey at The Watertown Daily Times in upstate New York, where he impressed then-U.S. Senate candidate Hillary Clinton so much she called him “John” at the end of an interview. From there, he went to Annapolis, Maryland, where he covered city, county and state government at The Capital newspaper. Today, Jeff writes about anything and everything. Along the way, Jeff has covered wildfires, a tropical storm, 9/11 and the Dec. 2 terror attack in San Bernardino. If you have a question or story idea about politics or the inner workings of government, please let Jeff know. He’ll do his best to answer, even if it involves a little math.

The Smartphone Market
Only sixth place: Huawei hard case

On a shopping street in Shenzhen advertising for the Huawei Mate 20 depends

Especially in the home of China, Huawei was able to sell its Smartphones

© Malte Mansholt / stern.de

Actually, Huawei wanted to, as quickly as the number 1 in the Smartphone market. But then Donald Trump tossed the rapidly growing group a stick between the legs. The latest sales figures are frightening. Xiaomi could face a similar crash.

The race looked as if it would have been: quarter over quarter came Huawei Smartphone sales overtook more to the front, and, finally, even Apple, the second-largest manufacturer. Samsung dethroning seemed only a matter of time, you’ll overtake the competitor soon, was Smartphone-chief Richard Yu for sure. Then Trump the prohibition of a strike U.S. companies in the business with Huawei. However, even though the first effects were quickly noticeable, is the full extent of Huawei’s crash is only now visible. And also, the largest profiteer of the crisis, must put on probably warm.

The latest Smartphone sales figures in the Smartphone market for Huawei to be a disaster: Just over 30 million Smartphones will have been sold to Huawei in the Christmas quarter of 2020, the experts of the two analysis firms to Counterpoint and Canalys agreed. Thus, the group crashes by more than 40 percent of its sales. Because of the competition from China may increase in the Form of Xiaomi, Vivo, and Oppo at the same time strong, enough for Huawei, only for the sixth place.

It goes downhill

The Situation is also noteworthy because Huawei had affected the crash of the demand in the corona of a crisis less than many competitors. Because, for example, Samsung and Apple sold temporarily noticeably less devices, could Huawei to overtake in the second quarter of the year, for the first Time ever, Samsung in most of the Smartphones sold. This was mainly due to the fact that the Chinese market has been hard hit by the early Corona Lockdown well before the rest of the world, a slump in the demand and then accordingly formerly again attracted.

But unlike Apple, Huawei was not able to benefit from the slow recovery of the global Smartphone market at the end of the year, – on the contrary. While the Californians with the sales of the new-Generation iPhone cracked the record for the best quarter of all time, broke the curve in the case of Huawei and literally.

Huawei suffers from Trump

There are several reasons. The most important of the Donald Trump decision to trade ban is against the group that has just been exacerbated even. Only the direct trade under says, was initially not allowed to be sold since September even more components to Huawei, if this is based on American technologies. Thus, the group is cut off de facto from the important Chip market, the months of stockpiled supplies of components are slowly used up. Huawei will not be able to deliver even if the demand is high enough devices.

Add to that the Christmas business is playing in Huawei’s home market, virtually no role. Here retaliated, and the group was able to achieve its previous recovery almost exclusively at home – nearly 70 percent of its Smartphone sales take place in China. There would be the demand for the new models of Mate – and Nova-series had not been so great, would the situation even worse.

No hope from the USA

The Outlook, however, is bleak. Currently, there are no signs that straight into the office of aging, U.S. President Joe Biden will relax the penalties of his predecessor. The suspicion that Huawei is tied in closely with the Chinese military and trust is unworthy in US politics cross-party consensus. In addition, trump’s Team in the election had tried to fight, to draw Biden as a China-nah, this was considered as the demonstrative a sharp tone against China. Here it is to be expected for Huawei so little. Add to that the Numbers are still likely to break in more, because they contain so far, sales of the affordable subsidiary brand Honor. The was however, sold in the autumn. The full effect will only be in the first quarter of the new year to be fully visible.

And: the First rumors speak of the Premium Smartphones, the Mate and P-series could soon be sold to a consortium of sold. Huawei has the true. But for Smartphones responsible Richard Yu now changes from the management of the consumer business in the Cloud division of the company, suggests that he still sees much of a future for the Smartphone area.

The successor to be chomping at the bit

The only good news for Huawei is that the strongest competitors from the home soon, something similar could threaten. As one of his last acts in office, Donald Trump has let the group to Xiaomi on the Black list. The company has been the home of almost everything, from the backpack to the fridge. Known it was in the West, but especially for its on a good price-performance ratio, which is trimmed down Smartphones.

And the very successful: The year of xiaomi’s Smartphone-to-put-business-a whopping 17 percent, calculated Counterpoint. With 145 million units sold, it is only 40 million sales behind Huawei in the last quarter it overtook the major competitors due to its strong waste even. With a lawsuit against the U.S. government, the group is trying to declare Trumps decision as a violation of the Constitution, of the restrictions freed. It was a private company with no contacts with the military, said the group. The had not helped in the case of Huawei, however, as an Argument.

Even Xiaomi with its international growth strategy should be slowed down similar to, and are likely to benefit from the established Smartphone companies, but only to a limited extent. With Oppo, Vivo and the RealMe, the second series of extremely successful Chinese manufacturer with big ambitions in the Attention. To the crown of the market is in Chinese hands and who wears them at the end, has not yet been decided a long time ago.

Sources:Counterpoint, Canalys, Business Insider

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