Shift. the September 1, 2020 at 19 h 07 min
Huawei could end up abandoning the smartphone market, believes analyst Ming-Chi Kuo. Following the US sanctions against it, the Chinese group should indeed see its market share decline in favor of its competitors in the years to come.
The situation is critical for Huawei. On Donald Trump's decision, the Chinese group cannot no longer trade with its American partners, including Google. Huawei is therefore deprived of an Android license and Google applications, including the Play Store. In addition, the manufacturer is no longer authorized to source chips from its usual suppliers. Without the support of the founder TSMC, Huawei is no longer able to produce the Kirin SoCs that power its smartphones.
On the same subject: Huawei denies – no smartphone under Harmony OS before 2021
World number 2 on the verge of collapse
Under these conditions, Ming-Chi Kuo, financial analyst at TF International Securities, believes that Huawei may well stop selling smartphones in the years to come. If the sanctions persist, the Chinese group may well choose to leave the mobile phone market. The firm would then concentrate on its other activities to generate profits. For the analyst, this is the worst-case scenario.
The analyst also sees another scenario. In this case, Huawei could continue to sell smartphones but its market share will shrink month after month. Competing brands like Apple, Oppo, Vivo and Xiaomi set to cash in on global No.2 tumble. Jeff Pu, analyst at GF Securities, assures that smartphone sales will contract by 75% in the course of 2021 if the Sino-US trade war does not end. Recognizing the impending collapse of its sales, Huawei is currently reducing its orders of components for the manufacture of its smartphones.
According to Richard Yu, CEO of Huawei's mobile division, the group is currently looking for ways to survive repeated assaults by the US government. At the same time, MediaTek requested the US agreement to supply chips to Huawei. The arrival of the Taiwanese founder is a beacon of hope for Huawei. We'll tell you more as soon as possible.