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Huawei’s struggles hurt entire smartphone ships in China, but rivals like Apple get new opportunities

Huawei's struggles hurt entire smartphone ships in China, but rivals like Apple get new opportunities - TechCrunch

The impact of US government sanctions on Huawei is hurting the company and polluting smartphones in China, one of the largest smartphone sellers. A new report by Canalis. But Huawei’s decline has opened up new opportunities for its main rivals, including Apple.

Canalis says Apple’s performance in China during the fourth quarter of 2020 was the best in years, thanks to the iPhone 11 and 12, its full-year ships returned to their 2018 levels, and it’s China’s China finally reached its highest quarterly exports. 2015, when the iPhone 6S was launched.

Overall, smartphone exports to China fell 11% to about 330 million units in 2020, with the market recovering from Huawei’s inability to ship new units. Although Huawei’s devices are in high demand in China, the company has struggled to cope with the Trump administration’s sanctions under the US government, which has banned it from trading with US companies and buying new chips. Has severely restricted his eligibility.

In May 2020, Guo Ping, chairman of Huawei Rotation, said that although the firm could design some semiconductor components, such as integrated circuits, it was “incapable of doing many other things.”

This left Huawei unable to meet the demand for its equipment but offered new opportunities to its main rivals, Canalis wrote by Nicole Peng, vice president of mobility. Oppo, Vivo, and Xiaomi are fighting to win Huawei’s offline flight channel partners across the country, including small rural ones backed by large investments in store expansion and marketing support. These commitments yielded immediate results, and within a few months, market share improved. ”

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Apple benefited from Huawei’s decline because its Mate series is the main rival to the iPhone in the top tier and shipped only 4 million Mate units in the fourth quarter. “However, Apple has not slowed down its market growth for the iPhone 12,” wrote Amber Liu, a research analyst at Canalis. “Aggressive promotion online promotions among e-commerce players, along with widely available trade-in plans with big banks and interest-free installments, have led Apple to its impressive performance.”

During the fourth quarter of 2020, the end of smartphones in mainland China fell 4% year on year to 84 million units. Although it ranks first in terms of exports, Huawei’s total market share jumped from 41% to 22% a year ago, and it shipped only 18.8 million smartphones, including units of Budget Brand Honor. It agreed to sell in November.

Canalys graph shows shipments from China's top five smartphone vendors

The catalyst graph shows shipments from China’s top five smartphone vendors. Image Credit: Canals

Huawei’s main competitors, on the other hand, expanded their fleet by the end of 2020. Oppo ranks second, shipping 17.2 million smartphones, a 23% increase over the year. Oppo’s closest rival, Vivo, increased its quarterly exports to 15.7 million units. Apple shipped more than 15.3 million units, bringing its market share to 18% from 15% a year earlier. Xiaomi outperformed the top five sellers, shipping 12.2 million units, a 52% year-over-year increase.

Huawei’s decision to sell the honor means the brand could quickly gain market share in 2021, as it already has consumer recognition, Peng wrote. 5G is also expected to help export smartphones to China, especially for premium models.

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