US sanctions direct hit Huawei smartphones 1st place → 6th place plummeting

Report on review of withdrawal of expensive smartphones… One focus on artificial intelligence and cloud

US “Huawei Communications Equipment Threat”… Medium medium “must be prepared for US pressure”

Huawei logo [로이터=연합뉴스 자료사진]

Huawei logo [로이터=연합뉴스 자료사진]

(Beijing = Yonhap News) Correspondent Kim Yun-gu = China’s Huawei, which has risen to the top in the world’s smartphone sales, plunged to 6th place after a direct hit by US sanctions.

According to CNBC on the 29th, market research firm Counterpoint Research estimated that Huawei’s global smartphone sales volume in the fourth quarter of last year was 33 million units, down 41% from the same period last year, and the market share was only 8%.

Huawei fell far behind Apple and Samsung, as well as Chinese rivals Xiaomi, Oppo, and Vivo to fall into the 6th place.

Another market research firm, Canalis, also announced that Huawei’s smartphone sales in the fourth quarter of last year were 32 million units, down by almost 43% from a year ago.

It is the first time in six years that Huawei has been pushed out of the top 5 global smartphone sales, Canalis said.

The company’s analyst Amber Liu said in a report that as a result of US sanctions, Huawei was suddenly pushed out of the market for most.

According to market research firms, Huawei ranks third in the world by total smartphone sales in 2020.

Huawei stores in Beijing [로이터=연합뉴스 자료사진]

Huawei stores in Beijing [로이터=연합뉴스 자료사진]

Huawei’s decline is in contrast to Apple’s record-high performance.

According to research firm IDC estimates, Apple sold 91.1 million smartphones in the fourth quarter of last year, regaining the top spot from Samsung Electronics. Apple’s sales volume is a record that no other company has achieved.

Apple increased its sales by 22% thanks to the popularity of its first 5G model, the iPhone 12, and accordingly the market share increased to 23.4%.

Apple has taken Huawei’s share of China’s high-end smartphone market as well. In China, there is still demand for Huawei, but the supply was not enough, said Canalis analyst Nicole Feng.

U.S. sanctions hit Huawei’s smartphone business immensely.

Huawei was blacklisted by the U.S. government in 2019, blocking access to key components and software from U.S. companies.

The fact that Huawei smartphones cannot use Google’s Android operating system is not a big deal in China, where Google search and YouTube are blocked, but it directly influenced consumer choices in overseas markets.

In the United States last year, Huawei even completely cut off the way to supply advanced semiconductors from companies such as Taiwan’s TSMC.

In the fourth quarter of last year, Huawei also suffered a big blow in the Chinese market, which it has been good at. According to CINNO Research in Shanghai, Huawei’s sales in the Chinese market in the fourth quarter fell by more than 40% to 24.2 million units.

[로이터=연합뉴스 자료사진]

[로이터=연합뉴스 자료사진]

Reuters reported recently that Huawei was considering selling the mid-to-low-end smartphone brand’Honour’ in November last year due to strong US sanctions, and is considering selling flagship brands’P’ and’Mate’.

This is interpreted as a measure that Huawei will eventually withdraw from the expensive smartphone business.

However, Huawei denied the plan.

Huawei recently led the consumer segment CEO Yu Cheong-dong, who grew the smartphone business, to lead the cloud and artificial intelligence sectors, a sign that Huawei is turning its focus to other businesses, CNBC said.

Meanwhile, the China Global Times pointed out on the 29th that Huawei should prepare for pressure from the new US government.

White House spokesman Jen Saki said on the 27th (local time) that “communication equipment made by untrusted companies, including Huawei, poses a threat to the security of the United States and its allies.”

Gaolin Yun, a researcher at the Chinese Academy of Social Sciences, predicted that the US will cooperate with China in the medical field, but may take tougher steps in some fields. He said the United States will continue to apply pressure in key areas where its next-generation technology domination may be threatened.

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