Chinese company Huawei has been the’Enfant Terrible’ in the smartphone market in recent years. As it grew rapidly, it surpassed Apple and rose to the second place in market share.
Huawei, which has been accelerating, has not concealed its ambition to “overtake Samsung and occupy the first place in the market”.
However, Huawei’s growth engine has declined since last year. It was because of US checks. In May 2019, former President Trump made full-fledged checks when Huawei was designated as a business licensed company.
The US check has become a brake on Huawei’s growth engine.
According to market research firm IDC, Huawei’s smartphone shipments last year were 183 million units. It was pushed to third place, behind not only Samsung (266.7 million units) but also Apple (26.1 million units).
In 2019, just one year ago, Huawei’s momentum was scary. Its shipments were 246 million units, ranking second in market share after Samsung (295.8 million units). Apple, which had been at 190 million units, was also far removed.
Then, Huawei was in danger of losing its presence in the smartphone market in just one year.
Huawei is expected to continue’falling with lost wings’ this year. According to Japan’s Nikkei Asian Review, Huawei notified parts suppliers that it will “reduce orders by more than 60%.”
Huawei also predicts that this year’s smartphone production will be around 70 to 80 million units, Nikkei said. This is a 60% decrease from last year’s shipments.
Huawei’s shipments last year decreased by 21.5% compared to 2019. However, with a further reduction of 60% here, the company is in danger of becoming a small smartphone maker.
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Currently, U.S. companies must obtain permission from the Department of Commerce to do business with Huawei. As a result, the Android operating system and other US-made core technologies are not being used properly.
As a result, Nikkei reported that the parts ordered by Huawei are mainly based on 4G models, not 5G, which is the latest technology. This is because most of the 5G model parts are subject to transaction permission from the US Department of Commerce.